FPI Selling Returns: Foreign investors have turned net sellers of Indian equities in September, withdrawing Rs 7,443 crore so far, after remaining net buyers in July and August. The latest outflows come after FPIs invested Rs 20,200 crore in July and Rs 29,631 crore in August, extending their buying streak amid improving sentiment towards Indian markets.
The September outflow marks a reversal in foreign investor sentiment after two consecutive months of net buying. Before the July turnaround, FPIs had withdrawn Rs 49,340 crore in June, Rs 32,963 crore in May, Rs 60,847 crore in April and a massive Rs 1.17 lakh crore in March, according to data from the National Securities Depository Ltd (NSDL).
Despite the buying seen in July and August, FPIs remain heavy net sellers in Indian equities in calendar year 2026. With Rs 7,443 crore withdrawn in September so far, their cumulative outflows for the year have widened to around Rs 2.31 lakh crore, significantly higher than the Rs 1.66 lakh crore withdrawn during the entire calendar year 2025.
Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking, noted, “FIIs stayed on the sell side for a third consecutive week during last week, offloading Rs 56.1 billion worth of Indian equities, while DIIs extended their buying streak with net purchases of Rs 231.6 billion.”
“FIIs were net seller for three sessions during last week including the quarterly MSCI index rebalancing session on Monday, August 31, 2026. While DIIs were net buyer in all five sessions during last week,” he said.
“Benchmark indices extended decline for the fourth week in a row as a sharp surge in crude oil prices amid escalating geopolitical tensions in West Asia weighed heavily on investor sentiment. Nifty closed lower for four out of the five trading session during last week. It started the week on a negative note and formed a weekly low of 23,786 on Wednesday’s session. Buying demand at lower levels saw the index closed off the lows at 23,897 levels down by 1.2 per cent. Bank Nifty relatively outperformed and closed the week marginally lower by 0.2 per cent. Broader market were mixed with Nifty Midcap witnessing profit booking and closed the week lower by 1.5 per cent while Nifty Small cap closed the week higher by 0.1 per cent,” Mukherjee said.
He added, “market participants will remain focused on Brent crude price movements, evolving US-Iran geopolitical tensions, and upcoming inflation data from the US ahead of the Federal Reserve’s mid-September policy meeting.”
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
