Indian equities face Rs 52,100 crore FPI exit

Foreign portfolio investors withdrew Rs 52,100 crore from Indian equities in October through Oct. 18, extending September’s Rs 35,861 crore outflow and keeping pressure on valuations.

Data showed the October withdrawal is already larger than the prior month’s net selling, indicating that foreign investors have not returned to sustained buying despite a brief inflow on Oct. 16.

October selling widens

The outflow comes as elevated crude oil prices, higher US bond yields and a stronger dollar weigh on allocations to Indian shares. Those pressures can raise India’s import bill, lift the relative appeal of dollar assets and tighten financial conditions for emerging-market equities.

Selling has continued in some sectors even after the temporary buying seen on Oct. 16, data showed. The sector-level pattern matters because concentrated foreign selling can affect index direction even when domestic flows or company earnings provide support elsewhere in the market.

If US yields and the dollar hold near elevated levels through the rest of October, foreign investors may keep reducing equity exposure; that would add pressure to Indian market valuations, reinforce caution across emerging-market funds and weigh on sectors reliant on overseas flows. If crude eases and yields stabilize instead, the pressure on Indian equities may moderate first in the most liquid large-cap shares.

The next dated marker is Oct. 31, when the full-month FPI tally will show whether the October withdrawal narrowed after Oct. 18 or exceeded September’s Rs 35,861 crore exit.