Foreign portfolio investors pull out Rs 34,843 crore from Indian equities in October

Foreign portfolio investors pulled out Rs 34,843 crore from Indian equities during October, marking a second consecutive month of substantial capital outflows from the domestic market. The sustained withdrawals were driven primarily by persistent concerns regarding elevated crude oil prices, high global interest rates, and the near-term outlook for corporate earnings.

Despite the heavy monthly tally, market sentiment registered a late turnaround as foreign investors transitioned into net buyers during the final week of October. Data compiled through depository records show that foreign participants infused approximately Rs 6,300 crore between October 26 and October 30. This followed net outflows of nearly Rs 2,700 crore recorded in the preceding week ended October 23.

The October pullout follows an outflow of Rs 35,861 crore in September, according to figures maintained by Central Depository Services Ltd. Earlier in the year, foreign portfolio investors maintained a positive stance, injecting Rs 20,200 crore in July and Rs 29,631 crore in August. With the latest monthly figures added, the cumulative foreign equity outflows for 2026 have reached Rs 2.95 lakh crore.

Market participants noted that while the final week's capital infusion provides a measure of relief, a single week of buying does not establish a definitive reversal of the prevailing trend. Domestic institutional investors continued to supply counterbalancing support, helping cushion local indices against sharper declines during periods of heavy foreign selling.

Analysts monitoring capital flows point out that decisions by overseas funds remain closely linked to broader macroeconomic variables, including currency fluctuations and yields in major Western economies. Foreign holdings face continued scrutiny as stakeholders evaluate corporate earnings reports and international energy market stability heading into the final quarter of the financial year.