Finance1 min read

FPIs pull out Rs 34,843 cr from equities in Oct; turn net buyers last week

By · Published by Everything Blog

In short

Foreign portfolio investors offloaded significant holdings in October, extending cumulative yearly outflows past Rs 2.95 lakh crore amid elevated crude oil prices and attractive U.S. yields. However, overseas funds pivoted in late October by deploying Rs 6,300 crore into select sectors across three out of four sessions. This brief influx supported the Nifty index in reclaiming the key 23,000 threshold. Analysts caution that broader market trajectory remains vulnerable to upcoming corporate earnings reports and international macro risks.

Key points

  • Overseas investors selectively purchased pharmaceutical, healthcare, and digital platform…: Overseas investors selectively purchased pharmaceutical, healthcare, and digital platform shares while actively divesting from large-cap financial stocks.
  • Late-month buying was aided by the Federal Reserve holding interest rates, appealing larg…: Late-month buying was aided by the Federal Reserve holding interest rates, appealing large-cap valuations, and a weakening global AI trade.
  • Market analysts warn that one week of net buying does not indicate a durable trend amid f…: Market analysts warn that one week of net buying does not indicate a durable trend amid foreign election and geopolitical uncertainties.

Sources checked by our analysis pipeline: 1

However, foreign investors turned net buyers towards the end of the month, infusing around Rs 6,300 crore during October 26-30 compared to net outflows of nearly Rs 2,700 crore in the week ended October 23.

According to data from the Central Depository Services Ltd (CDSL), FPIs withdrew Rs 35,861 crore in September. Before that, they had invested Rs 20,200 crore in July and Rs 29,631 crore in August.

With the latest withdrawals, cumulative FPI outflows from Indian equities in 2026 have reached Rs 2.95 lakh crore.

The recent improvement in flows signals a shift in near-term sentiment, but one week of buying does not necessarily indicate a sustained reversal, market experts said.

"For October as a whole, foreign selling remained significant, reflecting concerns around elevated crude oil prices, global interest rates and the outlook for corporate earnings," Anand K Rathi, co-founder of MIRA Money, said.

Higher crude prices pose risks to India's inflation and corporate margins, and attractive yields in the US continue to influence global capital allocation, he added.

Rathi said the sustainability of the recent improvement in foreign…

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