Indian equities lose Rs 3.12 lakh crore in foreign outflows

Foreign portfolio investors pulled Rs 3.12 lakh crore from Indian equities in 2026, data showed on Oct. 18, extending pressure on a market facing higher crude prices and elevated US bond yields.

The October outflow was Rs 52,100 crore, compared with the full-year withdrawal of Rs 3.12 lakh crore. Data showed the month’s selling contributed to a broader retreat after a brief return to buying failed to hold.

Rupee assets face yield pressure

Foreign portfolio investors had briefly resumed purchases, but the buying faded as caution returned across global markets. Data attributed the renewed selling to higher crude oil prices and US bond yields, two variables that can affect India’s current-account costs and the relative appeal of emerging-market equities.

For Indian equities, sustained foreign selling can weigh on liquidity and valuations when domestic inflows do not fully absorb supply. The source data did not give index levels, sector performance or stock-specific moves, leaving the immediate price impact unclear.

If US yields stay elevated through the rest of October, foreign investors may keep comparing Indian equity returns with dollar bond returns. If crude prices ease instead, the pressure on India’s import bill could moderate and give equity buyers a stronger macro argument.

The next dated checkpoint is Oct. 31, when the final October flow tally will show whether the Rs 52,100 crore withdrawal deepened or narrowed before month-end.