Foreign Portfolio Investors (FPIs) have pulled **₹20,974 crore** from Indian equities in September so far, bringing total outflows this month to over ₹23,000 crore. This shift signals growing caution driven by global uncertainties, rising US bond yields, and higher crude oil prices.
₹20,974 crore
Sep 1-19 FPI Outflow
Aug FPI Inflow: ₹22,000 crore→₹20,974 crore
Foreign Portfolio Investors (FPIs) have significantly reduced their exposure to Indian equities, withdrawing **₹20,974 crore** between September 1 and September 19, 2026. This adds to a total outflow exceeding **₹23,000 crore** for the month. The sell-off marks a sharp reversal from August's net inflows and is attributed to a confluence of global factors. Key drivers include increasing global uncertainties, the upward trend in US interest rates and bond yields which make US assets more attractive, sustained high crude oil prices impacting India's import bill, ongoing geopolitical risks, and concerns over currency depreciation. This cautious stance by foreign funds typically impacts market sentiment and could influence future investment trends in India.
💭 If you're wondering…
When US bond yields rise, investing in US government bonds becomes more attractive and less risky. This can cause FPIs to pull money out of riskier emerging markets like India to invest in the US.
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