Overview
- Foreign portfolio investors sold roughly Rs 20,974 crore of Indian equities in mid‑September, reversing inflows seen in July and August and marking renewed secondary‑market selling.
- The September selling has pushed 2026 year‑to‑date equity outflows to about Rs 2.45 lakh crore, a total notably larger than the full‑year outflow in 2025.
- Investors also withdrew money from Indian debt through multiple channels, with reported outflows of Rs 10,296 crore via the Fully Accessible Route, Rs 1,817 crore via the Voluntary Retention Route, and Rs 1,068 crore through the general route.
- Despite the selling in secondary markets, FPIs continued to take part in primary issuances, contributing several thousand crore in September and supporting the year‑to‑date primary market tally.
- Analysts say the selling reflects simpler economics: higher US yields narrow India’s yield advantage, pricier crude raises import and inflation risks that pressure the rupee, and those shifts make emerging‑market assets less attractive which could keep near‑term flows volatile and weigh on Indian markets.