Foreign Investors’ Outflow from Indian Stocks in October

• Foreign investors withdrew ₹85,790 crore ($10.2 billion) from Indian stocks in October.
• The outflow was triggered by Chinese stimulus measures, attractive stock valuations, and elevated domestic equities pricing.
• October is the worst-ever month for foreign fund outflows, with FPIs withdrawing ₹61,973 crore from equities in March 2020.
• Since June, foreign portfolio investors have consistently bought equities after withdrawing ₹34,252 crore in April-May.
• FPIs made a net withdrawal of ₹85,790 crore from equities between October 1 and 25.
• The sustained FPI selling impacted market sentiments, pulling the NSE’s benchmark index Nifty down by 8% from the peak.
• The trend of FPI selling is showing no signs of reversal.