FPIs sell ₹15,096 crore in five days as equity outflows dominate weekly trend

Foreign Portfolio Investors (FPIs) continued their selling streak on September 26, pulling out ₹3,726.82 crore from Indian markets, marking the fifth consecutive session of net outflows totalling ₹15,096.22 crore for the week ending September 26, 2025.

The latest outflow was driven primarily by equity sell-offs, with FPIs recording net sales of ₹4,100.60 crore in equity markets on Thursday. This brought the week’s total equity outflows to ₹12,734.24 crore, reflecting sustained foreign investor pessimism amid trade policy uncertainties.

“FIIs continued to be net cash sellers to the tune of ₹24,454.10 crore as of Sep’25 (Till date),” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

The week started with FPIs investing ₹3,115.25 crore on September 22, but sentiment quickly turned negative. September 23 saw outflows of ₹2,654.95 crore, followed by ₹1,485.95 crore on September 24, ₹4,103.25 crore on September 25, and ₹3,726.82 crore on September 26.

Debt markets provided some relief with net inflows of ₹430.64 crore on Thursday, primarily through Debt-VRR investments of ₹864.42 crore. However, this was partially offset by outflows in other debt categories, with Debt-FAR witnessing net sales of ₹424.92 crore.

The rupee’s continued weakness added to investor concerns, with the USD-INR conversion rate touching 88.6696 on September 26 compared to 88.3055 on September 22. “The rupee has slipped to all-time lows, and a break below 89 could further dent sentiment,” noted Santosh Meena, Head of Research at Swastika Investmart.

Mutual fund investments also turned negative, with FPIs pulling out ₹80.75 crore on Thursday after recording outflows of ₹390.32 crore on September 25. The week’s mutual fund outflows totalled ₹608.14 crore, primarily from equity schemes.

“US announcements of ‘stricter’ norms on H1B visas, with further headwinds for the market originating from the US announcing 100 per cent tariffs on branded or patented pharma products imported into the US,” explained Chouhan, highlighting key factors behind the sustained selling pressure.

Stock exchange transactions dominated FPI activity, accounting for ₹19,634.75 crore in gross purchases and ₹23,280.82 crore in gross sales on Thursday. Primary market and other investments remained subdued with gross purchases of just ₹29.31 crore.

The derivatives market showed heightened activity, with FPIs executing over 14.6 million contracts across various instruments on September 26. Index options remained the most traded segment with 11.7 million contracts each on buy and sell sides, while stock futures saw significant activity with over 2.18 million contracts traded.

“FPI flows are expected to remain volatile,” Chouhan added, reflecting uncertainty over future investment patterns amid ongoing trade tensions and policy changes.

Market experts remain divided on the near-term outlook. “Looking ahead, investor attention will centre on upcoming US economic indicators, particularly inflation and employment data. On the domestic front, the RBI’s policy decision and industrial production figures will play a pivotal role in guiding sentiment,” said Vinod Nair, Head of Research, Geojit Investments Limited.

The sustained FPI outflows have contributed to broader market weakness, with both Nifty and Sensex losing around 2.7 per cent for the week. “Above all, FII flows remain the key determinant for market trend,” Meena concluded, emphasising the critical role of foreign investment flows in determining market direction.

Published on September 27, 2025