Foreign investors have sold a net 256.62 billion rupees, equivalent to 2.7 billion dollars, of Indian stocks in September. This is set to be the first net selling in three months, driven by rising crude oil prices and persistently high bond yields, which have dimmed the appeal of Indian assets. In September, the NSE index and the SENSEX index each fell about 5.7 percent. According to data from the National Securities Depository, as of the 29th, foreign investors had withdrawn 26.75 billion dollars in 2026, on track to set a record high on an annual basis. In addition to rising crude oil prices and global monetary tightening, foreign investors are shifting funds to markets rich in AI-related stocks, such as South Korea and Taiwan. Deelaj Gaur, chief investment strategist at Choice Wealth, said crude oil and geopolitics remain the main risks. He noted that rising crude oil prices immediately affect the current account, inflation expectations, and the rupee, making them a particularly big challenge for India.
National Securities Depository data is cited as the source of foreign-investor outflow figures; no impact on the entity itself.
