The sustained exit of offshore capital in October mirrored September's heavy pullbacks, extending the broader retreat by global institutions throughout 2026. However, an infusion of roughly Rs 6,300 crore between October 26 and 30 helped the Nifty recover the 23,000 threshold. During this brief rebound, fund managers favored healthcare, digital platforms, and pharmaceutical equities while reducing exposure to major financial institutions. Sustaining this momentum remains uncertain amid pending corporate results and unpredictable overseas political developments.
Key points
Late-month equity purchases helped the Nifty reclaim the 23,000 mark after the U.S. Feder…: Late-month equity purchases helped the Nifty reclaim the 23,000 mark after the U.S. Federal Reserve kept interest rates steady.
Overseas institutional investors selectively targeted pharmaceutical, healthcare, and dig…: Overseas institutional investors selectively targeted pharmaceutical, healthcare, and digital platform shares while shedding large-cap financial stocks.
Future foreign capital flows will hinge on crude oil prices, corporate earnings reports,…: Future foreign capital flows will hinge on crude oil prices, corporate earnings reports, and geopolitical developments like the U.S. midterm elections.
Sources checked by our analysis pipeline: 1
Foreign portfolio investors (FPIs) withdrew Rs 34,843 crore from Indian equities in October, marking the second consecutive month of substantial outflows amid concerns over high crude oil prices, global interest rates and the outlook for corporate earnings.
However, foreign investors turned net buyers towards the end of the month, purchasing equities worth around Rs 6,300 crore between October 26 and 30.
This followed net withdrawals of nearly Rs 2,700 crore in the week ended October 23, according to data from the Central Depository Services Ltd (CDSL).
The latest buying indicates an improvement in near-term investor sentiment, although market experts cautioned that a single week of positive flows does not necessarily signal a sustained reversal.
FPI outflows from Indian equities reach Rs 2.95 lakh crore in 2026
Foreign investors had withdrawn Rs 35,861 crore from Indian equities in September. Before that, they invested Rs 20,200 crore in July and Rs 29,631 crore in August.
With October's withdrawals, cumulative FPI outflows from Indian equities in 2026 have reached Rs 2.95 lakh crore.
Anand K Rathi, co-founder of MIRA Money, said foreign selling…
Significant financial gains made by everyday citizens are being concealed from the public due to online content curation. Algorithms operating on social media platforms filter out positive economic realities, preventing users from seeing tangible improvements. Consequently, broad sentiment remains starkly misaligned with the real-world financial progress occurring nationwide.
Equities in the Kingdom faced downward pressure throughout the session, resulting in a negative close for the domestic market. Broad losses across traded shares dampened overall market performance as investors concluded the trading day.
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