Foreign Portfolio Investors

FPI taxation and capital flows should not be mixed

Foreign portfolio investors (FPIs) withdrew Rs 34,843 crore from Indian equities in October, marking the second consecutive month of heavy outflows, amid concerns over elevated crude oil prices, global interest rates and the corporate earnings outlook. However, foreign investors turned net buyers towards the end of the month, infusing around Rs 6,300 crore during October 26-30 compared to net outflows of nearly Rs 2,700 crore in the week ended October 23. According to data from the Central Depository Services Ltd (CDSL), FPIs withdrew Rs 35,861 crore in September. Before that, they had invested Rs 20,200 crore in July and Rs 29,631 crore in August. With the latest withdrawals, cumulative FPI outflows from Indian equities in 2026 have reached Rs 2.95 lakh crore. The recent improvement in flows signals a shift in near-term sentiment, but one week of buying does not necessarily indicate a sustained reversal, market experts said. "For October as a whole, foreign selling remained ...

Sebi has extended KYC review intervals for certain foreign portfolio investors to two or eight years and removed a separate disclosure requirement, effective December 1

However, Foreign Portfolio Investors (FPIs) significantly moderated their selling last week and turned net buyers on two trading days, signalling some easing in selling pressure

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Foreign investors have withdrawn Rs 44,166 crore from Indian equities so far in October, bringing the total outflows this year to more than Rs 3 lakh crore as elevated crude oil prices, a firmer US dollar and higher US bond yields weigh on investor sentiment. Also, the artificial intelligence-led rally in North Asian markets attracts higher foreign capital. The latest outflows follow a net withdrawal of Rs 35,861 crore in September. Before this, foreign portfolio investors (FPIs) had invested Rs 20,200 crore in Indian equities in July and Rs 29,631 crore in August, data from the NSDL showed. With the latest selling, FPI withdrawals from Indian equities in 2026 have reached Rs 3.04 lakh crore, significantly higher than the Rs 1.66 lakh crore recorded during the entire 2025, the data noted. Vedant Gupte, Co-Founder and CEO of investment platform Trackk, said the selling should be viewed more as a global repositioning of capital than a verdict on India's investment prospects. "Crude

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Regulators are working to make FPI registration faster and digital, streamline KYC and facilitate bond indices as foreign investor access to Indian markets expands

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Overseas ownership of local equities is at a 17-year low and the rupee remains among Asia's weaker-performing currencies this year

Foreign Portfolio Investors (FPIs) have turned cautious again, pulling out Rs 20,974 crore from Indian equities so far in September amid global uncertainties, higher US interest rates and bond yields, elevated crude oil prices and a weakening rupee. The latest outflow comes after foreign investors returned to Indian equities in July and August, when they invested Rs 20,200 crore and Rs 29,630 crore, respectively, according to data from CDSL. With the September selling, FPIs have now withdrawn a total of Rs 2.45 lakh crore from Indian equities so far in 2026, surpassing the Rs 1.66 lakh crore outflow recorded during the entire 2025. According to the data, FPIs withdrew Rs 20,974 crore from Indian equities this month, till September 18. However, the trend of FPI investment through the primary market has been continuing in the month. Dheeraj Gaur, Chief Investment Strategy Officer at Choice Wealth, attributed the latest selling by FPIs to three key factors -- higher US interest rates

Experts say the divergence suggests foreign rotated towards domestic consumption and financial themes while trimming exposure to commodity-linked and defensive sectors

Foreign portfolio investors (FPIs) infused Rs 30,919 crore in Indian equities in August, extending their buying streak to a second straight month, amid improving corporate earnings, resilient economic activity, stable rupee and easing geopolitical concerns. The inflow follows Rs 20,200 crore invested in July, marking a sharp turnaround after four consecutive months of heavy selling. FPIs had withdrawn Rs 49,340 crore in June, Rs 32,963 crore in May, Rs 60,847 crore in April and a massive Rs 1.17 lakh crore in March. Prior to the selling streak, they had invested Rs 22,615 crore in February, according to CDSL data. The two straight months of buying, following the worst six-month stretch in years, offer the first indication of a possible trend reversal. However, foreign investors remain net sellers in Indian equities in 2026, with withdrawals of Rs 2.23 lakh crore so far. This is higher than the Rs 1.66 lakh crore outflow recorded during the entire 2025. "The important factors drivi

Friday's selling wiped out most of the net FPI inflows recorded in August, reducing net buying to ₹454 crore; DIIs purchased equities worth ₹5,184 crore

Foreign Portfolio Investors (FPIs) have accelerated buying in Indian equities this month, infusing Rs 23,544 crore so far in August as improving quarterly earnings, a stable rupee and better market prospects lift sentiment. The inflow comes after FPIs invested Rs 20,200 crore in July, marking a sharp turnaround from four consecutive months of heavy selling and signalling renewed confidence in Indian equities. FPIs had withdrawn Rs 49,340 crore in June, Rs 32,963 crore in May, Rs 60,847 crore in April and a massive Rs 1.17 lakh crore in March. Prior to this selling streak, they had invested Rs 22,615 crore in February, according to CDSL data. Despite the recent buying, foreign investors have remained net sellers in Indian equities in 2026, withdrawing around Rs 2.3 lakh crore so far -- exceeding the Rs 1.66 lakh crore outflow registered during the entire 2025. "The factors that are driving the FPIs back to the Indian market are: earnings growth revival as reflected in Q1 results, FP

Foreign investors continued their buying spree in Indian equities, investing Rs 16,621 crore in the first fortnight of August, as improving relative valuations, resilient corporate earnings and expectations of softer US interest rates boosted sentiment. The inflow follows a Rs 20,200-crore investment in July, marking a sharp turnaround after four consecutive months of heavy selling by Foreign Portfolio Investors (FPIs). FPIs had withdrawn Rs 49,340 crore in June, Rs 32,963 crore in May, Rs 60,847 crore in April and a massive Rs 1.17 lakh crore in March. Prior to this selling streak, they had invested Rs 22,615 crore in February, according to CDSL data. Despite the recent buying, foreign investors have remained net sellers in Indian equities in 2026, withdrawing around Rs 2.4 lakh crore so far, already exceeding the Rs 1.66 lakh crore outflow recorded during the entire 2025. Market experts attributed the recent reversal to a combination of factors, including attractive valuations ..

FPI buying decisions had a stronger link to stock performance in Q1FY26, even as their share of NSE-listed companies' market capitalisation fell to a 14-year low

Foreign investors bought Indian equities worth Rs 20,202 crore in July, turning net buyers after four months of selling, with domestic consumption showing signs of recovery

Foreign portfolio investors have infused $8.44 billion into Indian debt and equity markets since the RBI's June policy measures aimed at attracting overseas capital