FPIs Withdraw ₹13,138 Crore from Indian Equities in Early September 2026 Amid Global Uncertainty

As per The PTI news report, Foreign Portfolio Investors (FPIs) withdrew ₹13,138 crore from Indian equities in the first half of September 2026.  

This withdrawal follows a period where FPIs were net buyers in July 2026 and August 2026, with investments of ₹20,200 crore and ₹29,630 crore, respectively.  

The outflow is attributed to global uncertainties affecting crude oil prices and US bond yields. 

FPI Activity in 2026 

FPIs have been active in the Indian equity market throughout 2026. After being net sellers from March 2026 to June 2026, they turned net buyers in July 2026 and August 2026.  

However, the trend reversed in September 2026, with a withdrawal of ₹13,138 crore by September 11, 2026. This brings the total outflow from Indian equities by FPIs to ₹2.37 trillion in 2026, surpassing the ₹1.66 trillion withdrawn in 2025. 

Factors Influencing FPI Withdrawals 

The withdrawal in September is primarily driven by global factors. Rising US bond yields and a firm dollar have impacted risk appetite.  

Additionally, crude oil prices have surged, with Brent crude reaching $109.97 per barrel, maintaining levels above $102 per barrel. These factors have contributed to the reduced attractiveness of emerging markets for foreign investors. 

Read More: SEBI Proposes Changes To Closing Auction Session For Derivatives Expiry Days! 

Impact on Debt Market 

FPIs also extended their selling to the debt market during this period. They withdrew ₹1,350 crore through the Fully Accessible Route and ₹955 crore through the general route, while investing ₹29 crore through the Voluntary Retention Route.  

This indicates a broader trend of cautious investment behaviour amid global economic uncertainties. 

Conclusion 

In September 2026, FPIs withdrew ₹13,138 crore from Indian equities, following net buying in July 2026 and August 2026. The total outflow for 2026 reached ₹2.37 trillion, driven by global uncertainties, rising US bond yields, and increased crude oil prices. 

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