From mint · Pranati Deva · · 1m 40s
FPIs pull out ₹35,860 cr from Indian stocks in Sept
SEBI's easier access reforms fail to stop FPI selling in Indian markets.
In brief
SEBI's easier access reforms fail to stop FPI selling in Indian markets. Foreign portfolio investors sold ₹35,860 crore in Indian equities in September despite SEBI's regulatory simplifications, driven by global returns and currency concerns. Originally reported by mint.
FPI outflows in September
Foreign portfolio investors sold ₹35,860 crore in Indian equities in September, reversing previous month inflows.
SEBI's regulatory efforts
SEBI has eased onboarding and access for foreign investors, working with RBI on further measures to reduce friction.
SEBI chairman's statement
SEBI Chairman Tuhin Kanta Pandey said they have eased onboarding and access, but FPIs look at net returns for investment choices.
Global factors driving outflows
Higher US bond yields, crude oil prices, and a weaker rupee reduced the relative attractiveness of Indian equities for foreign investors.
Market correction in September
The Nifty 50 and Sensex declined almost 6% each during the September sell-off.
Investment strategist's view
V K Vijayakumar noted that FPI selling requires a decline in crude and US bond yields for a market rebound.
Competing market opportunities
Global investors are finding attractive opportunities in dollar assets and Asian technology markets, reducing India's appeal.
Market recovery potential
Sustained buying by DIIs and retail investors has supported the market, preventing a major crash despite FPI outflows.
Key challenge for India
SEBI and RBI can simplify market access, but FPI allocation decisions depend on global returns and currency factors.
What happens next
The market will be influenced by FY27 Q2 results and potential declines in crude and US bond yields.
The main idea
Foreign portfolio investors sold ₹35,860 crore in Indian equities in September despite SEBI's regulatory simplifications, driven by global returns and currency concerns.
