FPIs Withdraw ₹34,843 Crore in October, but Late Buying Offers Relief

Foreign investors bought around ₹6,300 crore of Indian equities in October’s final week, although September–October withdrawals together exceeded ₹70,000 crore.

Foreign portfolio investors withdrew a net ₹34,843 crore from Indian equities in October 2026, extending the selling seen in September. Buying returned in the final week, offering some relief after another month of substantial withdrawals.

FPIs invested approximately ₹6,300 crore during October 26–30, compared with net selling of nearly ₹2,700 crore in the preceding week, according to a PTI report citing depository data. Despite that improvement, cumulative equity outflows for 2026 stood at about ₹2.95 lakh crore.

Two months of selling outweigh the summer inflows

The monthly figures show how sharply foreign investment changed direction after July and August.

Source: PTI’s reporting of CDSL data.

Calculations using these figures put combined September–October withdrawals at ₹70,704 crore. That exceeded July–August inflows of ₹49,831 crore by ₹20,873 crore.

October’s net selling was ₹1,018 crore lower than September’s, a decline of approximately 2.8%. The monthly pressure therefore eased only modestly, even though the final week showed a more noticeable improvement.

Why the final week matters

The move from roughly ₹2,700 crore of selling to ₹6,300 crore of buying represents an improvement of approximately ₹9,000 crore between the two weekly readings.

However, the final week’s purchases are already included in October’s monthly total. They should not be deducted again from the ₹34,843 crore outflow.

A positive week shows that foreign demand returned during that period. Establishing a broader recovery would require buying to continue across subsequent weeks and eventually produce stronger monthly figures.

Oil, interest rates and earnings remain concerns

Anand K Rathi, co-founder of MIRA Money, attributed October’s selling pressure to expensive crude oil, global interest rates and uncertainty about corporate earnings, according to PTI.

He also highlighted domestic institutional investors’ role in absorbing foreign sales. His assessment was that the durability of the improvement would depend on greater clarity around oil prices, global economic conditions and company profits.

These factors affect different parts of the investment decision. Higher energy costs can put pressure on business expenses, while overseas interest rates influence the alternatives available to international investors. Earnings results help investors judge whether share valuations are supported by company performance.

Selective buying does not mean a broad market shift

Foreign investors’ positioning also varied by sector. VK Vijayakumar, chief investment strategist at Geojit Investments, said selling continued in large financial companies while investors selectively bought pharmaceutical, healthcare and digital platform stocks.

He suggested that large-cap valuations, domestic growth and the US Federal Reserve’s decision to leave rates unchanged could have supported the improvement in sentiment. These were possible explanations for the buying, rather than confirmed causes of individual investment decisions.

What investors should watch next

The next few weekly flow readings will help show whether late-October buying persists. Corporate earnings, crude oil movements and overseas policy developments will provide further context.

Comparisons also need consistent data. A daily cash-market trading figure should not automatically be treated as interchangeable with a depository-based investment total. Before drawing conclusions, readers should check the reporting period, market coverage and whether the figures are provisional.

October ended with a better weekly reading, but the full-month balance remained firmly negative. The next test is whether returning foreign demand can last beyond a short period of buying.