Selling by foreign investors continues in the Indian stock market. In October, FPIs sold shares worth Rs 53,337 crore through exchanges. However, the pace of selling has slowed recently due to the fall in US bond yields and the strengthening rupee.
Business: The effect of rising crude oil prices is visible on foreign investment in the Indian stock market. Foreign portfolio investors (FPIs) have sold a large amount of shares in October. After ten consecutive weeks of selling, there was some relief in the last trading week, but the market remains under pressure. Experts say that till the price of Brent crude remains above $ 100 per barrel, the attitude of foreign investors may remain cautious.
How many shares did foreign investors sell in October?
Foreign portfolio investors have sold Rs 53,337 crore through Indian stock exchanges so far in October 2026. However, during the same period he has also invested Rs 5,281 crore in the IPO market.
According to Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, the total selling by foreign investors through exchanges this year has reached Rs 3,69,164 crore.
This figure shows that foreign investors have been reducing their stake in Indian shares for a long time. However, investing money in IPO indicates that their interest has not completely ended.
Meanwhile, another PTI report put October's net equity outflows at Rs 48,056 crore, based on depository data. The difference between the two figures is due to the different basis of reporting.
Why is crude oil inflation increasing concern?
India fulfills a major part of its requirement through import of crude oil. In such a situation, when oil becomes expensive in the international market, the country's import bill increases. This may impact the rupee, inflation and companies' costs.
With the price of Brent crude remaining above $100 per barrel, foreign investors are cautious about the Indian market. If oil prices remain high, there is a danger of transportation and production costs increasing.
According to analysts, unless there is significant relief in crude oil prices, there will be a possibility of selling by foreign investors will intensify again.
Selling for the tenth consecutive week, then how did you get some relief?
Foreign institutional investors remained net sellers for the tenth consecutive week. However, their sales in the trading week ending October 23 were much less than before. During this period, foreign investors also made net purchases in two trading days.
The fall in American bond yields is being considered an important reason behind this change. The yield of America's 10-year government bond came down from 5.36 percent to around 5 percent.
Apart from this, strengthening of rupee against dollar to the level of 94.94 was also helpful. The softening of valuations of big stocks has made some companies attractive for foreign investors.
Big fall in midcap and smallcap stocks
Last week, the biggest loss in the stock market was seen in the shares of small and medium sized companies. The Nifty Smallcap 100 index declined 7.3 percent and the Nifty Midcap 100 declined 5.6 percent.
In comparison, Nifty 50 index fell by 2.35 percent. This shows that shares of larger companies performed relatively better.
Analysts believe that one possible reason for the sharp decline in midcap and smallcap could be forced selling of shares bought on margin. When investors are unable to provide the required margin as the fall increases, they may have to liquidate their positions. This creates additional pressure on the market.
Big companies get support from purchases by domestic investors
Despite continuous selling by foreign investors, the fall in many large-cap stocks was limited. One reason for this is the purchasing by domestic institutional investors (DII).
Mutual funds and other domestic investment institutions are investing money in the market. This has helped in reducing the impact of foreign capital outflow to some extent.
According to market experts, domestic investors remain interested in big companies whose shares have reached reasonable levels after the fall in valuation.
What will be kept an eye on in the stock market next week?
The new trading week in the stock market will start from Monday, October 26. During this period, investors will keep their eyes mostly on the prices of crude oil and the attitude of foreign investors. Changes in US bond yields will also be important for the market. Especially it remains to be seen whether foreign investors continue to withdraw money from Indian shares or return to buying.
The Federal Reserve meeting in America will also be important this week. The upcoming decision regarding interest rates may increase the volatility in the Indian market. At the same time, quarterly results of many big companies are to come. Based on these results, buying or selling of shares of the respective companies may be seen. Investors will also keep an eye on the news related to the ongoing tension in West Asia.