FPIs pull out nearly Rs 50,000 crore in October

New Delhi: Foreign Portfolio Investors (FPIs) have withdrawn Rs 48,056 crore from Indian equities in October so far, amid elevated crude oil prices, escalating Middle East tensions, inflation concerns and weak corporate earnings.

The latest outflows follow net withdrawals of Rs 35,861 crore in September. FPIs had invested Rs 20,200 crore in July and Rs 29,631 crore in August, according to data from the Central Depository Services Ltd (CDSL).

With the October withdrawals, cumulative FPI outflows from Indian equities in 2026 have reached Rs 3.08 lakh crore, substantially exceeding the Rs 1.66 lakh crore withdrawn during the whole of 2025.

Dheeraj Gaur, chief investment strategy officer at Choice Wealth, attributed the selling to crude prices rising to around $114 a barrel amid Middle East tensions, weak earnings, inflation concerns and uncertainty over domestic liquidity.

The Rs 30,213-crore Jio Platforms IPO also temporarily absorbed market liquidity, while global portfolio reallocations added to the pressure on equities.

Anand K Rathi, co-founder of MIRA Money, said persistently high crude prices and concerns over the earnings outlook continued to drive withdrawals. Higher oil and logistics costs could weigh on corporate earnings growth in coming quarters, despite relatively strong second-quarter results.

Elevated US interest rates have also made American assets attractive. However, domestic institutional investors and systematic investment plan (SIP) inflows have helped cushion the selling pressure.

FPI selling moderated significantly in the week ended October 23, with foreign investors turning net buyers on two trading days.

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The Hans India