New Delhi: Foreign Portfolio Investors (FPIs) turned net sellers in September, reversing the positive buying trend observed during July and August.
According to the latest depository data, FPIs withdraw from Indian equities to the extent of ₹35,861 crore over the past month. Geopolitical uncertainty, elevated US treasury bond yields, and rising crude oil prices weighed heavily on global investor risk appetite.
[Exchange Equity Offloading: ₹45,537 Cr] ──▶ Offset by ──▶ [Primary Market Inflows: ₹9,676 Cr]
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[Net Equity Capital Outflow: ₹35,861 Cr] ◀──( Driven by US Yields & Geopolitical Risk )─┘
Primary Market Inflows Fail to Offset Exchange Selling
Significantly, exchange-based transactions accounted for the vast majority of net equity capital withdrawals.
Foreign investors offloaded ₹45,537 crore through stock exchange sales during the month under review. However, institutional participation in the primary market remained positive, with foreign funds infusing ₹9,676 crore into new public issuances.
Key Foreign Portfolio Flow Statistics (September):
Net Equity Outflow: Totalled ₹35,861 crore in net equity sales.
Secondary Market Exchange Selling: Reached ₹45,537 crore.
Primary Market Injections: Infused ₹9,676 crore into new equity issues.
FAR Debt Inflows/Outflows: Recorded ₹10,431 crore in net debt withdrawals.
Debt Market Experiences Extended Capital Pullback
Concurrently, foreign investors extended their selling activity into the Indian debt security market throughout September.
[DEBT MARKET CAPITAL WITHDRAWALS (SEPTEMBER)]
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▼ ▼ ▼
[Fully Accessible Route (FAR)] [General Limit Debt Route] [Voluntary Retention Route]
Outflows reached ₹10,431 Cr Outflows reached ₹5,247 Cr Outflows reached ₹5,049 Cr
Capital withdrawals through the Fully Accessible Route (FAR) stood at ₹10,431 crore during the period. Furthermore, foreign investors pulled out ₹5,247 crore via the General Limit route and an additional ₹5,049 crore through the Voluntary Retention Route (VRR).
September FPI Investment Breakdown
| Financial Segment / Trading Route | Foreign Investment Movement | Capital Volume (₹ Crore) | Primary Market Catalyst |
| Secondary Market Equities | Net Capital Withdrawal | ₹45,537 Crore | High US bond yields and oil prices. |
| Primary Market Equities | Net Capital Injection | ₹9,676 Crore | Strong domestic IPO pipeline. |
| FAR Debt Securities | Net Capital Withdrawal | ₹10,431 Crore | Rebalancing in global fixed income. |
| General Limit Debt | Net Capital Withdrawal | ₹5,247 Crore | Tighter liquidity across global markets. |
| Voluntary Retention Route (VRR) | Net Capital Withdrawal | ₹5,049 Crore | Adjustments in long-term debt holdings. |
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