FPIs Pull Out Rs 13,138 Crore in September Amid Global Uncertainty and Rising Oil Prices

Crore from Indian Equities in First Two Weeks of September.

Significant Outflow Foreign Portfolio Investors

In a significant outflow, foreign portfolio investors (FPIs) have withdrawn Rs 13,138 crore from Indian equities in the first two weeks of September, according to NSDL data. This latest selling comes as global uncertainty, higher crude oil prices, and rising US bond yields hit investor risk appetite.

The outflow has taken the year-to-date withdrawal well above the Rs 1.66 lakh crore that foreign investors pulled out during the whole of 2025.

Read More: EPFO Launches WhatsApp Channel for PF Updates, Members Can Join Through Official Link

The September selling comes after a two-month period of buying. There, FPIs invested Rs 20,200 crore in Indian equities in July and another Rs 29,630 crore in August. Vedant Gupte, Co-Founder and CEO of Trackk, said that the recent withdrawal was largely linked to developments outside India.

"September selling is a dollar-and-crude story, not an India story," he said. When US yields firm up and oil climbs. Money leaves every emerging market." Crude oil prices have risen sharply amid heightened geopolitical uncertainty.

With Brent crude surging to $109.97 per barrel on Friday.

Pabitro Mukherjee Deputy Vice Presidentresearch

Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking, said investor sentiment was also being affected "The Iran-US conflict and what happens to crude oil prices as a result are closely linked," he said. V K Vijayakumar, chief investment strategist at Geojit Investments, added that elevated crude prices (Brent is above $108) and higher inflation imply tighter monetary policy.

Also Read: Saudi Oil Pipeline Shutdown Sparks Global Oil Price Surge Amid Middle East Tensions

This means bond yields will rise further. "If the US 10-year bond inches up to 5 per cent, there can be a sharp correction in equity markets globally," he said.

In the debt market, FPIs withdrew Rs 1,350 crore through the Fully Accessible Route (FAR) and Rs 955 crore through the general route during the period under review. They invested Rs 29 crore through the Voluntary Retention Route (VRR).

The selling in the debt market is also a reflection of the impact of rising US bond yields on investor risk appetite.