FPIs turn cautious on Indian stocks amid global headwinds; what could improve the foreign flow outlook
AI Summary
The recent trend of foreign portfolio investors (FPIs) turning net sellers in Indian equities signals a cautious sentiment towards the market, driven by rising global bond yields and elevated crude oil prices. This shift may lead to increased volatility in the Indian stock market, particularly for sectors sensitive to oil prices and inflation, while also highlighting the need for domestic investors to reassess their portfolios in light of these external pressures. As FPIs remain selective, focusing on primary market investments, retail investors should consider diversifying their holdings and staying informed about geopolitical developments that could further impact market dynamics.
Foreign portfolio investors have turned net sellers again in September, as surging bond yields, elevated crude oil prices and ongoing tensions in the Middle East have triggered aggressive selling.
In September, they sold stocks worth ₹35,860 crore, with the selling continuing into October, as foreign investors pulled out another ₹18,513 crore from equities in just two trading sessions, according to data from NSDL.
Original Article
Published on Livemint
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This is a market news update from Livemint, published on 05 October 2026.
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