Foreign investors withdraw 35,000 crore rupees from Indian stock market

Foreign Portfolio Investors (FPI) have significantly withdrawn capital from the Indian stock market. In September, FPIs were net sellers of approximately 35,860 crore rupees. This trend continued into early October, with an additional withdrawal of 9,232 crore rupees recorded on October 1.

Over a specific four-day period spanning late September to early October, foreign institutional investors sold roughly 35,000 crore rupees, averaging more than 5,000 crore rupees in daily outflows. This heavy selling has put downward pressure on major indices like the Sensex and Nifty.

Analysts attribute this capital flight to external factors rather than domestic corporate earnings. Key drivers include high crude oil prices linked to supply concerns in the Strait of Hormuz, a declining rupee, high yields on US bonds, and capital shifts toward AI-driven North Asian markets.

Domestic Institutional Investors (DII) have largely offset these outflows by purchasing shares. During the same four-day period of heavy foreign selling, DIIs invested approximately 33,455 crore rupees, helping to stabilize the market.