FPI Selling Hits ₹14,474 Crore in September as Middle East Tensions Roil Markets

Foreign portfolio investors turned net sellers in Indian equities during September, withdrawing ₹14,474 crore through stock exchanges up to September 12. The reversal follows positive flows in July and August, driven by escalating Middle East tensions, surging crude oil prices, and concerns over inflation and interest rates.

Despite the selling spree, FPIs continued deploying capital in India's primary market, investing ₹1,336 crore up to September 12. Year-to-date primary market FPI investment stood at ₹47,183 crore, signalling sustained interest in new equity offerings.

The Nifty 50 recorded its fifth consecutive weekly decline, with broad-based selling across major sectors. Brent crude climbed above USD 108 a barrel, heightening concerns about India's inflation and growth outlook. Domestic institutional investors provided support with net purchases of ₹6,419.46 crore during the week.