Rs 20,000 crore FPI outflows in 2 days! Stock market headed for more pain?
FPIs sold Rs 10,148.41 crore worth of equities on Wednesday, in addition to Rs 9,980.22 crore worth of outflows on Tuesday, taking total outflows for the two days to Rs 20,128.63 crore, NSE data suggested.
- Oct 1, 2026,
- Updated Oct 1, 2026 8:06 AM IST
Foreign portfolio investors (FPIs) sold over Rs 20,000 crore worth of equities in the last two sessions of September, taking the monthly outflows to Rs 35,860.56 crore, the highest since April 2026. FPIs sold Rs 10,148.41 crore worth of equities on Wednesday, in addition to Rs 9,980.22 crore worth of outflows on Tuesday, taking total outflows for the two days to Rs 20,128.63 crore, NSE data compiled from AceEquity suggested.
This comes as the Nifty fell 6.43 per cent and the Sensex 6.19 per cent in the month gone by, while the advance-to-decline ratio slipped to 0.95.
Data compiled from depository NSDL showed foreign outflows hit a record of Rs 2,60,302 crore this year and were 57 per cent higher than Rs 1,66,286 crore FPI outflows seen in whole of Calendar 2025.
The US 10-year Treasury yield touched 5.29 per cent on Thusrday, keeping global valuation pressure and the risk of further foreign outflows elevated. "Unless yields cool alongside crude, India’s recovery may remain concentrated rather than broad-based," Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a SEBI-registered Research Analyst firm.
In the near term, said Mayur Patel, President and Fund Manager, Listed Equity at 360 ONE Asset, the market would be sensitive to how the US-Iran war resolves, given its direct pass-through to crude-linked inflation and, from there, to global bond yields.
"Closely tied to this is the final outcome on US tariffs targeting buyers of Russian crude, including India, where the sanctions bill remains live and its resolution carries real implications for India's oil-sourcing costs and trade relationship with Washington," Patel said.
He noted that rate hikes are now imminent given sharply higher global yields and rising inflation. The key question is the quantum and timing, as he expects a modest 50-basis-point hike over the next 3-6 months rather than an aggressive tightening cycle.
Patel said the festive-season demand offers the first hard read on consumption, but needs to be weighed against the emerging drought situation, whose drag on rural incomes could offset any festive-led pickup in urban demand.
In a technical note, Bajaj Broking said the immediate bias for the Nifty may stay negative and a follow through weakness will signal extension of decline towards the key support area of 22,400, being the confluence of the trendline support joining the major lows of the past two years and the 200-week EMA.
"A move above recent high of 22,810 will signal a pullback towards the 23,000 levels. However, for a meaningful trend reversal index would require forming a sustained Higher High–Higher Low structure and reclaim the 23,000-23,100 level. A sustained move above 23,100 could signal a pause in the ongoing downtrend," the brokerage said.
Foreign portfolio investors (FPIs) sold over Rs 20,000 crore worth of equities in the last two sessions of September, taking the monthly outflows to Rs 35,860.56 crore, the highest since April 2026. FPIs sold Rs 10,148.41 crore worth of equities on Wednesday, in addition to Rs 9,980.22 crore worth of outflows on Tuesday, taking total outflows for the two days to Rs 20,128.63 crore, NSE data compiled from AceEquity suggested.
This comes as the Nifty fell 6.43 per cent and the Sensex 6.19 per cent in the month gone by, while the advance-to-decline ratio slipped to 0.95.
Data compiled from depository NSDL showed foreign outflows hit a record of Rs 2,60,302 crore this year and were 57 per cent higher than Rs 1,66,286 crore FPI outflows seen in whole of Calendar 2025.
The US 10-year Treasury yield touched 5.29 per cent on Thusrday, keeping global valuation pressure and the risk of further foreign outflows elevated. "Unless yields cool alongside crude, India’s recovery may remain concentrated rather than broad-based," Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a SEBI-registered Research Analyst firm.
In the near term, said Mayur Patel, President and Fund Manager, Listed Equity at 360 ONE Asset, the market would be sensitive to how the US-Iran war resolves, given its direct pass-through to crude-linked inflation and, from there, to global bond yields.
"Closely tied to this is the final outcome on US tariffs targeting buyers of Russian crude, including India, where the sanctions bill remains live and its resolution carries real implications for India's oil-sourcing costs and trade relationship with Washington," Patel said.
He noted that rate hikes are now imminent given sharply higher global yields and rising inflation. The key question is the quantum and timing, as he expects a modest 50-basis-point hike over the next 3-6 months rather than an aggressive tightening cycle.
Patel said the festive-season demand offers the first hard read on consumption, but needs to be weighed against the emerging drought situation, whose drag on rural incomes could offset any festive-led pickup in urban demand.
In a technical note, Bajaj Broking said the immediate bias for the Nifty may stay negative and a follow through weakness will signal extension of decline towards the key support area of 22,400, being the confluence of the trendline support joining the major lows of the past two years and the 200-week EMA.
"A move above recent high of 22,810 will signal a pullback towards the 23,000 levels. However, for a meaningful trend reversal index would require forming a sustained Higher High–Higher Low structure and reclaim the 23,000-23,100 level. A sustained move above 23,100 could signal a pause in the ongoing downtrend," the brokerage said.