The selling spree by foreign portfolio investors (FPIs) in the Indian stock market continued through October. FPIs withdrew a total of ₹34,843 crore from the Indian equity market during the month. This is the second consecutive month in which foreign investors have engaged in heavy selling in the market. Their sentiment was affected by high crude oil prices in global markets, elevated interest rates worldwide and expectations of lacklustre quarterly results from companies. However, during the final week of October (26-30 October), foreign investors changed course and made a net investment of ₹6,300 crore in the market. In the previous week, which ended on 23 October, they had sold shares worth ₹2,700 crore. FPIs have sold ₹2.95 lakh crore so far in 2026 According to data from Central Depository Services Limited (CDSL), foreign portfolio investors (FPIs) had withdrawn ₹35,861 crore from the Indian stock market in September, the month before October. Before that, net investments of ₹20,200 crore came in during July and ₹29,631 crore during August. Including the fresh selling in October, total FPI outflows from the Indian equity market in 2026 so far have reached ₹2.95 lakh crore. Foreign investors were buyers in 3 of 4 trading sessions The recovery in the last week of October has improved the market’s short-term sentiment, but market experts say that buying for just one week cannot be considered a lasting reversal in the trend. FPIs were net buyers in 3 of the last 4 trading sessions, ending on 30 October, in the cash market. This signals a gradual improvement in foreign investors’ outlook towards Indian shares. Support coming from domestic institutional investors Driven by buying from foreign investors in the final weeks of October, the Nifty once again managed to cross the 23,000 mark. According to market experts, Domestic Institutional Investors (DIIs) played an important role despite continued selling by FPIs. DIIs absorbed the selling pressure from foreign investors and maintained stability in the market. Buying in pharma, healthcare and digital platform shares A clear difference was seen in foreign investors’ preferences during October. While FPIs continued selling large-cap financial (banking and finance) shares, they were seen buying shares of select pharmaceutical (drug), healthcare and digital platform companies. Five key reasons behind the selling and buying Experts’ view: Crude oil prices and the US elections will remain in focus What is FPI and how does it affect the market? What is FPI: Foreign portfolio investment, or FPI, refers to investments made by foreign investors in a country’s stock market, mutual funds or bonds. Impact on the market: When FPIs invest money in the Indian market, the stock market rises and the Indian rupee strengthens. However, when they withdraw money, the market declines and the rupee weakens. Post navigation Sanjay Gupta wrote ‘Kaabil 2’:Rakesh Roshan says, ‘I liked the script, we were working on it when the incident happened’ Diljit Dosanjh wanted to hold a concert in Bihar:Administration did not take responsibility for crowd management
