28 Oct , 2026 By : Shambhavi Mishra
Foreign portfolio investors (FPIs) have pulled out a massive Rs 48,056 crore from Indian equities in October so far, driven by persistent concerns over elevated crude oil prices and inflationary pressures. Despite this heavy capital flight, market participants have noted early signs of a potential moderation in selling trends, highlighted by a couple of sessions featuring net buying.
The heavy withdrawal by foreign institutional investors underscores the impact of global headwinds on domestic market sentiment. Elevated crude oil prices remain a critical risk factor for India's import-heavy economy, directly influencing inflation metrics and the fiscal deficit. However, the resilience shown by domestic institutional investors (DIIs) and intermittent buying support indicate that the local market retains structural depth despite foreign capital exodus.
Investors should maintain a balanced portfolio approach, focusing on fundamentally strong domestic-driven sectors while keeping an eye on upcoming global macroeconomic indicators, including US GDP reports and currency fluctuations.
Reported by et-ipos.
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