The Crossbill News Desk
Foreign portfolio investors have abruptly reversed their recent buying trend in Indian equities, pulling out Rs 13,138 crore in the first two weeks of September amid rising crude oil prices, a stronger US dollar and climbing American bond yields, news agency PTI reported.
The latest withdrawal has taken their cumulative outflow from Indian equities in 2026 to Rs 2.37 lakh crore, already well above the Rs 1.66 lakh crore withdrawn during the whole of 2025.
The September sell-off marks a sharp turnaround after FPIs had returned to Indian equities as net buyers in July and August, investing Rs 20,200 crore and Rs 29,630 crore respectively, according to data from the Central Depository Services (India) Ltd (CDSL). Before that, foreign investors had remained net sellers for four consecutive months from March to June.
The latest outflows have come against a worsening global backdrop, with the Iran-US conflict pushing up oil prices and concerns over inflation and US monetary policy strengthening. Brent crude rose to $109.97 per barrel on September 11, while US bond yields have also climbed, adding to pressure on emerging-market assets.
Vedant Gupte, CEO of investment platform Trackk highlighted the importance of global factors told news agency PTI: “September selling is a dollar-and-crude story, not an India story. When U.S. yields firm up and oil climbs, money leaves every emerging market.”
The surge in crude prices has added to concerns for oil-importing economies such as India, while a stronger dollar and higher US yields make dollar-denominated assets more attractive to global investors. Indian equities have also faced broader pressure, with the benchmark indices recording a fifth consecutive weekly decline amid the worsening geopolitical situation.
V.K. Vijayakumar, chief investment strategist at Geojit Investments, has warned that a further rise in US bond yields could intensify the global sell-off.
Speaking to PTI, he cautioned that a US 10-year bond yield at 5%, could precipitate a sharp global sell-off, and FPIs may “turn sellers and move money to high-yielding bonds”.
Foreign investors have also extended their selling to Indian debt markets. They withdrew Rs 1,305 crore through the Fully Accessible Route (FAR) and Rs 955 crore through the general route, while investing Rs 29 crore through the Voluntary Retention Route (VRR).
The latest FPI reversal therefore comes at a particularly sensitive juncture for Indian markets, with the trajectory of crude prices, US yields and the Iran-US conflict likely to remain key determinants of foreign investment flows in the weeks ahead.
The latest withdrawal has taken their cumulative outflow from Indian equities in 2026 to Rs 2.37 lakh crore, already well above the Rs 1.66 lakh crore withdrawn during the whole of 2025.
The September sell-off marks a sharp turnaround after FPIs had returned to Indian equities as net buyers in July and August, investing Rs 20,200 crore and Rs 29,630 crore respectively, according to data from the Central Depository Services (India) Ltd (CDSL). Before that, foreign investors had remained net sellers for four consecutive months from March to June.
The latest outflows have come against a worsening global backdrop, with the Iran-US conflict pushing up oil prices and concerns over inflation and US monetary policy strengthening. Brent crude rose to $109.97 per barrel on September 11, while US bond yields have also climbed, adding to pressure on emerging-market assets.
Vedant Gupte, CEO of investment platform Trackk highlighted the importance of global factors told news agency PTI: “September selling is a dollar-and-crude story, not an India story. When U.S. yields firm up and oil climbs, money leaves every emerging market.”
The surge in crude prices has added to concerns for oil-importing economies such as India, while a stronger dollar and higher US yields make dollar-denominated assets more attractive to global investors. Indian equities have also faced broader pressure, with the benchmark indices recording a fifth consecutive weekly decline amid the worsening geopolitical situation.
V.K. Vijayakumar, chief investment strategist at Geojit Investments, has warned that a further rise in US bond yields could intensify the global sell-off.
Speaking to PTI, he cautioned that a US 10-year bond yield at 5%, could precipitate a sharp global sell-off, and FPIs may “turn sellers and move money to high-yielding bonds”.
Foreign investors have also extended their selling to Indian debt markets. They withdrew Rs 1,305 crore through the Fully Accessible Route (FAR) and Rs 955 crore through the general route, while investing Rs 29 crore through the Voluntary Retention Route (VRR).
The latest FPI reversal therefore comes at a particularly sensitive juncture for Indian markets, with the trajectory of crude prices, US yields and the Iran-US conflict likely to remain key determinants of foreign investment flows in the weeks ahead.
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