Foreign investors have withdrawn Rs 34,843 crore from the Indian stock market in October 2026. There has been a big selloff for the second consecutive month. However, in the last week of the month, foreign investors invested about Rs 6,300 crore, which brought some relief to the market.
Business: Continuous selling by foreign investors in the Indian stock market has once again raised concerns. Foreign portfolio investors (FPIs) made a net withdrawal of Rs 34,843 crore from shares of Indian companies in October 2026. Even in September, foreign investors had withdrawn huge amounts of money. However, in the last trading week of October the picture changed and foreign investors were seen making purchases. Market experts say that this change is a relief, but it is too early to assume a permanent return of foreign investors.
Foreign investors withdrew money for the second consecutive month
The attitude of foreign investors in the Indian stock market has changed significantly in the last few months. He had made good purchases in Indian shares in July and August, but the selling phase started from September.
According to Central Depository Services Limited (CDSL) data, foreign investors had invested Rs 20,200 crore in July and Rs 29,631 crore in August. After this, in September he sold shares worth Rs 35,861 crore. Net withdrawal of Rs 34,843 crore was recorded in October also.
Including September and October, foreign investors have withdrawn Rs 70,704 crore from the Indian stock market. With this, their total net withdrawal till now in the year 2026 has reached around Rs 2.95 lakh crore.
Investors’ attitude changed in the last week of October
Despite continued selling by foreign investors throughout the month, good news came for the market in the last week. Between October 26 and 30, foreign investors made net purchases of about Rs 6,300 crore.
Earlier in the week ending October 23, there was a withdrawal of about Rs 2,700 crore. That is, within a week there was a big change in the attitude of foreign investors.
According to VK Vijayakumar, chief investment strategist at Geojit Investments, foreign investors were net buyers in the cash market in three of the last four trading sessions of October.
However, experts believe that a few days of purchasing cannot determine whether foreign investors have started investing money in the Indian market again for the long term.
Impact of crude oil prices and US interest rates
Many international reasons are being cited behind the selling by foreign investors. Among these, high crude oil prices, global interest rates and uncertainty regarding the quarterly results of Indian companies are prominent.
Mira Money co-founder Anand K. According to Rathi, there is a danger of inflation increasing in India due to the cost of crude oil. This may also increase costs for many companies and impact profits.
On the other hand, due to better returns on bonds in America, foreign investors have the option to invest money there. In such a situation, they are reviewing their investments in the stock markets of different countries.
Rathi says whether the recent purchases by foreign investors will continue or not will depend on crude oil prices, the global economic situation and the results of the companies.
Domestic investors played a role in controlling the market
Domestic institutional investors (DIIs) have supported the Indian market amid huge selling by foreign investors. These include mutual funds, insurance companies and other big domestic investors.
When foreign investors sell a large number of shares, purchases by domestic institutional investors can relieve the pressure on the market to some extent.
According to experts, signs of growth in the Indian economy and attractive valuations of shares of big companies could also be the reasons for the recent purchases by foreign investors.
Foreign investors have been seen buying shares of some pharma, healthcare and digital platform companies. At the same time, selling of shares of big financial companies continued.
On what factors will the movement of the stock market depend in November?
Now investors will keep an eye on the business of November. Decisions related to interest rates of the US Federal Reserve, crude oil prices and quarterly results of companies can affect the direction of the market.
According to Pabitro Mukherjee, Vice President (Research), Bajaj Broking, the return of foreign investors to buying again is a positive sign. However, the market may remain volatile due to expensive crude oil and ongoing tensions in different parts of the world.
In the coming days, investors will also keep an eye on the US midterm elections and international developments.
At present, the market has definitely got some relief from the purchases in the last week of October, but the withdrawal of Rs 34,843 crore for the entire month shows that the confidence of foreign investors is yet to be fully restored.