Foreign portfolio investors withdrew a net 441.66 billion rupees from Indian equities in October so far, taking this year’s outflows to about 3.04 trillion rupees. The selling followed September’s withdrawals after inflows in July and August. Analysts linked the shift to oil prices, the dollar and US bond yields, alongside competing investment opportunities in North Asia.
Foreign portfolio investors withdrew a net 441.66 billion rupees from Indian equities in October so far. That pushed this year’s net withdrawals to about 3.04 trillion rupees. The October figure is cumulative over the available trading period; the month remains in progress. It measures net foreign equity flows into and out of the Indian market.[1], [2]
The October withdrawals followed net selling of 358.61 billion rupees in September. Earlier, foreign investors had added 202 billion rupees in July and 296.31 billion rupees in August. VK Vijayakumar, chief investment strategist at Geojit Investments, described heavy foreign selling alongside India’s weak market performance this year. The Nifty index’s return since the start of the year was negative 13.87 per cent.[1]
Vedant Gupte, co-founder and chief executive of investment platform Trackk, interpreted the selling as a global repositioning of capital. He cited higher oil prices, a firmer dollar and rising US bond yields, as well as the artificial intelligence-related rally in North Asian markets. Vijayakumar pointed to US 10-year Treasury yields above 5.2 per cent. Analysts also said domestic institutional buying provided some support against foreign selling.[1]
