New Delhi, Sept 20: Foreign Portfolio Investors (FPIs) have pulled out ₹20,974 crore from Indian equities so far in September amid global uncertainties, higher US interest rates and bond yields, elevated crude oil prices and a weakening rupee.
The latest outflow comes after foreign investors returned to Indian equities in July and August, when they invested ₹20,200 crore and ₹29,630 crore, respectively, according to data from CDSL.
With the September selling, FPIs have now withdrawn a total of ₹2.45 trillion from Indian equities so far in 2026, surpassing the ₹1.66 trillion outflow recorded during the entire 2025.
According to the data, FPIs withdrew ₹20,974 crore from Indian equities this month, till September 18.
However, the trend of FPI investment through the primary market has been continuing in the month.
The Federal Reserve has raised rates to 3.75-4.00 per cent, with the narrowing yield differential between India and the US reducing the relative attractiveness of Indian assets.
At the same time, Brent crude has remained above $100 a barrel, with escalating tensions in the West Asia adding to concerns over inflation and India’s import bill, he said.
The rupee has also come under pressure, declining 1.1 per cent in the previous week, its sharpest weekly fall in four months. It traded at a record low of 95.92-95.96 per US dollar and breached the 96-mark intraday, adding to concerns for foreign investors, he added.
However, the resilient Indian economy and expectations of better earnings growth are positives, he added.
Foreign investors also extended their selling to the debt market during the period under review. They withdrew ₹10,296 crore through the Fully Accessible Route (FAR), ₹1,817 crore via the Voluntary Retention Route (VRR) and ₹1,068 crore through the general route. (BVI)
