Foreign money is still walking out of Dalal Street. Overseas investors have pulled roughly ₹48,056 crore out of Indian shares so far this October, and with that, 2026 is turning into one of the toughest years for FPI flows in recent memory.
According to the latest depository data reported on Sunday, October 25, foreign portfolio investors (FPIs) were net sellers of Indian equities worth ₹48,056 crore in October up to the week ended October 23. Analysts blame high crude oil prices, tension in the Middle East and worries over company earnings. There is one small bright spot: selling slowed last week, and FPIs were net buyers on two trading days.
Quick Facts
- Who: Foreign portfolio investors (FPIs)
- What: Net selling of ₹48,056 crore in Indian equities in October so far
- When: Data reported on October 25, 2026, covering October up to the week ended October 23
- Where: Indian stock markets (NSE and BSE)
- Key number: 2026 outflows so far at about ₹3.08 lakh crore, versus ₹1.66 lakh crore in all of 2025
FPI Outflow in October: How the Numbers Break Down
The headline number hides two different stories. As reported by News On AIR, foreign investors sold about ₹53,337 crore worth of shares through the stock exchanges this month. At the same time, they put around ₹5,281 crore into the primary market, which means IPOs and other fresh share sales. Net it out, and you get the ₹48,056 crore figure.
Earlier in the month, reports had put October’s outflow at about ₹52,100 crore. The fact that the number has come down a little lines up with the two days of net buying seen last week.
Debt markets were mixed too. FPIs added ₹3,737 crore under the general limit route but took out ₹3,858 crore from the Fully Accessible Route and ₹1,332 crore from the Voluntary Retention Route, as per the same data.
Why Foreign Investors Are Selling Indian Stocks
Oil is the big one. India buys most of its crude from abroad, so when prices stay high, the import bill swells, inflation worries return and company margins get squeezed. Dheeraj Gaur of Choice Wealth pointed to crude trading around $114 a barrel, along with geopolitical tension, weak earnings and tight domestic liquidity, as the main reasons for the selling, Free Press Journal reported.
Liquidity got an extra squeeze this month from the ₹30,213 crore Jio Platforms IPO, which temporarily soaked up a large pile of market money, according to the same report.
Anand K Rathi of MIRA Money warned that higher oil and logistics costs could start showing up in corporate earnings over the next few quarters. In plain terms: if trucks, flights and factories pay more for fuel, profits take the hit, and foreign funds tend to move before that shows up in the results.
Signs the FPI Selling Could Be Slowing
Not everything is gloomy. V K Vijayakumar of Geojit Investments linked last week’s easing to lower US bond yields, a firmer rupee and large-cap valuations that now look more reasonable. The US 10-year Treasury yield has eased from about 5.36% to around 5%, according to Free Press Journal.
Why does a US bond yield matter to an investor in Mumbai? When safe American government bonds pay over 5%, big global funds have less reason to take risks in emerging markets like India. As those yields cool, Indian stocks start to look more tempting again.
2026 FPI Outflows: A Year of Heavy Selling
This October fits into a bigger pattern. FPIs pulled out ₹35,861 crore in September. Before that, July and August had actually brought inflows of ₹20,200 crore and ₹29,631 crore, but those gains have now been wiped out.
Total outflows for 2026 now stand at about ₹3.08 lakh crore, compared with ₹1.66 lakh crore for the whole of 2025, based on depository data cited in reports.
What has stopped the market from falling much harder is domestic money. Steady buying by mutual funds, insurers and other domestic institutions, plus monthly SIP flows from ordinary Indians, has been absorbing a large part of the foreign selling. An Angel One report in mid-October put domestic institutional buying for 2026 at about ₹6.83 lakh crore at that point.
What We Don’t Know Yet
- Whether last week’s two days of net buying is the start of a turn or just a pause.
- The final October number, which will depend on trading in the last week of the month.
- How the upcoming US Federal Reserve and Bank of Japan policy decisions will move global money flows.
What This Means for You
If you invest through SIPs or hold shares directly, FPI selling usually shows up as choppy markets and sudden drops in big-name stocks that foreign funds own heavily, such as large banks and IT companies. It does not, by itself, say anything about any single company.
- Keep an eye on crude oil prices and the rupee, as both have been driving foreign flows this year.
- Watch the US Fed and Bank of Japan decisions, which Bajaj Broking’s Pabitro Mukherjee flagged along with US GDP data and earnings as key market triggers.
- Avoid making decisions based on one week of headlines. If you’re unsure, speak to a SEBI-registered adviser. This article is not investment advice.
Our Take
A ₹3 lakh crore-plus exit in under ten months is a loud message from global funds, and most of it is about oil and US yields rather than anything India alone controls. The more interesting story is the other side of the trade: Indian households, through SIPs and mutual funds, are now the ones holding the market up. That is a big shift from a decade ago, and it is a big reason this selloff hasn’t turned into a crash.
FAQs
How much have FPIs withdrawn in October 2026?
Depository data reported on October 25 shows net FPI selling of ₹48,056 crore in Indian equities in October so far.
What is the total FPI outflow in 2026?
Reports put 2026 outflows at about ₹3.08 lakh crore so far, much higher than the ₹1.66 lakh crore seen in all of 2025.
Why are FPIs selling Indian shares?
Analysts cite high crude oil prices, Middle East tensions, inflation worries, weak earnings and tight liquidity, including money locked up by the Jio Platforms IPO.
Who is supporting the Indian market amid FPI selling?
Domestic institutional investors such as mutual funds and insurers, backed by steady SIP inflows from retail investors, have absorbed much of the foreign selling.
For official FPI data, see NSDL’s FPI monitor and the News On AIR report.
Based on reporting by News On AIR, Free Press Journal and Angel One.
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