Foreign portfolio investors (FPIs) have withdrawn Rs 48,056 crore from the Indian stock market so far in October. Higher crude oil prices, rising tensions in West Asia, inflation concerns and weak quarterly results from companies have led to a sell-off by foreign investors. However, their selling pace slowed down significantly during the last week and they were also net buyers in two trading sessions. Let us also tell you what kind of statistics have been observed…

Sales of more than 3 lakh crores

According to Central Depository Services Limited (CDSL) data, foreign investors pulled Rs. 35,861 crore was withdrawn. Earlier in July, he paid Rs. 20,200 crore and in August it invested Rs. 29,631 crore had been invested. With the October withdrawal, the total withdrawal of FPIs from the Indian stock market in the year 2026 will increase to Rs. 3.08 lakh crores. In this entire year 2025 withdrawn Rs. 1.66 lakh crore is much higher than the amount. Meanwhile, foreign investors were also net sellers in the Indian debt or bond market in October. They have invested under Fully Accessible Route (FAR) Rs. 3,858 crore and under Voluntary Retention Route (VRR) Rs. 1,332 crore was withdrawn. However, he through normal route Rs. 3,737 crore had been invested.

Fear of foreign investors

Dheeraj Gaur, chief investment strategy officer at Choice Wealth, said high crude oil prices, tensions in West Asia, weak corporate results, inflation fears and uncertainty over cash availability in the domestic market are the main reasons for selling by foreign investors. Crude oil prices rose to around $114 a barrel amid tensions in West Asia. He said that Jio platform’s Rs. 30,213 crore initial public offering (IPO) also temporarily reduced market liquidity. Apart from this, portfolio changes by global investors have increased pressure on the Indian stock market.

A fall in bond yields

VK Vijayakumar, chief investment strategist at Geojit Investments Ltd, said the decline in selling by foreign investors in the week ended October 23 was due to factors such as lower US bond yields, stronger rupee and attractive stock valuations. Yields on 10-year bonds in the US fell to around five percent from 5.36 percent, while the rupee strengthened to 94.94 per dollar. The valuation of shares of large companies in particular seemed attractive to investors.

The share of foreign investors has decreased

Vedanta Gupte, co-founder and chief executive officer (CEO) of investment platform Trek, said that as alarming as the foreign investor withdrawal figures appear at first glance, the situation may not be that dire. The share of foreign investors in the Indian stock market has fallen to a multi-year low, while the share of domestic investors has increased. He said continued investment by foreign investors through IPOs could be an indication that they are not completely walking away from the Indian market, but are withdrawing money from existing investments and shifting to other opportunities.