The outflow got here after Foreign Portfolio Investors (FPIs) infused over Rs 29,600 crore in August and Rs 20,200 crore in July, information from National Securities Depository Limited (NSDL) confirmed.
Earlier than that, that they had remained web sellers for 4 straight months from March to June.
With the most recent withdrawal, the overall outflow by overseas portfolio buyers from Indian equities climbed to Rs 2.32 lakh crore up to now in 2026, surpassing the Rs 1.66 lakh crore withdrawn throughout your entire yr 2025, the info confirmed.
In response to NSDL information, FPIs withdrew Rs 7,443 crore from Indian equities within the first week of the month, until September 4.
Rajkumar Rathi, Chief Funding Officer at YES Securities, stated the latest promoting was pushed by a rebound in crude oil costs, which has raised issues over India’s inflation and present account outlook.
“Additional strengthening US bond yields and a agency greenback index have diminished overseas danger urge for food for rising markets,” he stated.Rathi additionally pointed to India’s premium fairness valuations, significantly in development sectors and the mid- and small-cap segments, as elements prompting overseas funds to guide earnings and rebalance portfolios.
Nonetheless, he stated overseas investor urge for food for India’s main market has remained “structurally resilient”.
“As seen in early September, the pipeline of upcoming IPOs will proceed to behave as a definite sponge for overseas capital. If corporations value their main choices attractively, it is going to structurally maintain main market FPI inflows, even when the secondary market faces web promoting,” Rathi stated.
Wanting forward, international bond yields are more likely to stay a key driver of FPI flows, V Ok Vijayakumar, Chief Funding Strategist at Geojit Investments, stated.
Brent crude costs, evolving US-Iran geopolitical tensions and upcoming US inflation information forward of the Federal Reserve’s mid-September coverage assembly can even affect overseas fund flows, stated Pabitro Mukherjee, Deputy Vice President-Analysis at Bajaj Broking.
Overseas buyers additionally prolonged their promoting to the debt market through the interval beneath evaluate. They withdrew Rs 377 crore by the Absolutely Accessible Route (FAR) and Rs 231 crore by the Voluntary Retention Route (VRR) whereas investing Rs 217 crore by the final route.
