FPIs Have Pulled Out Over ₹3 Lakh Crore in 2026. So Why Is the Nifty Up 0.7% Today?

Quick take: Foreign portfolio investors (FPIs) have withdrawn more than ₹3 lakh crore from Indian equities in 2026, a record, and October is on pace to be another heavy month. Yet on the morning of October 13 the Sensex and Nifty were higher. The gap between the two stories is the market’s real puzzle today.

What the market did

At 10:00 AM the Sensex was up 678.29 points (0.94%) at 72,602.97 and the Nifty 50 was up 204 points (0.91%) at 22,568.05. By 11:00 AM the gains had eased: the Sensex was up 492 points (0.68%) at 72,416.33 and the Nifty up 156.65 points (0.7%) at 22,520.00. That follows Monday’s close of 71,924.68 on the Sensex and 22,363.35 on the Nifty. India VIX, the volatility gauge, fell 5.3% to 14.44 around 11:14 AM.

Leadership was narrow. Nifty IT was the standout, with TCS, HCLTech and Tech Mahindra among the top gainers after HCLTech’s Q2 FY27 profit rose 21.2% to ₹5,132 crore. Smallcaps lagged, with the Nifty Smallcap index down about 0.69% in morning reports while midcaps were up roughly 0.33%.

The flow numbers

Depositary data cited in press reports put 2026 year-to-date FPI selling of Indian equities at ₹3.04 lakh crore as of October 11, rising to about ₹3.08 lakh crore in a report updated this morning with data through October 12. Either way, it is well above the ₹1.66 lakh crore withdrawn in all of 2025. Monthly figures show the shift: FPIs were net buyers of ₹20,200 crore in July and ₹29,631 crore in August, then sold ₹35,861 crore in September. October’s tally was ₹44,166 crore in one report and ₹47,417 crore for the first 12 days in another, so treat the exact figure as approximate until the data settles.

Domestic institutions are the counterweight. One report puts their 2026 equity purchases at ₹6.83 lakh crore, compared with ₹7.88 lakh crore in all of 2025 and ₹5.26 lakh crore in 2024. In plain terms, domestic money has absorbed much of the foreign selling.

Why foreigners are selling

The reasons cited are global more than local. The US 10-year Treasury yield above 5.2% makes American bonds more competitive with emerging-market equities. Elevated crude oil, a stronger dollar and a weaker rupee add pressure, while an AI and semiconductor-led rally in the US, Taiwan and South Korea is drawing global capital toward markets with more exposure to that theme. Analysts quoted in the reports say a reversal would need a steadier rupee, cheaper crude, a narrower current account deficit and stronger corporate earnings.

Key levels and numbers to track

Nifty 50: 22,520 at 11:00 AM versus 22,363.35 at Monday’s close.
Sensex: 72,416.33 at 11:00 AM, after touching 72,602.97 at 10:00 AM.
India VIX: 14.44, down 5.3%, a sign traders are paying less for protection for now.
FPI flow: 2026 outflow above ₹3 lakh crore; October’s pace versus September’s ₹35,861 crore.

What to watch next

First, whether the IT-led bounce broadens beyond one sector; smallcaps lagging suggests it has not yet. Second, the daily FPI and DII provisional numbers after the close, which show whether foreign selling is slowing or merely being absorbed. Third, US inflation data due this week and the direction of Treasury yields and crude, the two external variables most often blamed for the outflows. Flow data is noisy and revised, so one session rarely settles the trend.

Sources

#niftyit #NiftyBank #Nifty50 #NSE #BSE #TradingTips #TradingSetup #trending #TradingDiscipline #stocktrading #StockInFocus #StockToWatch #FPIOutflow #TreasuryYields #CrudeOil #IndiaVIX #Sensex #HCLTech #TCS

Disclaimer: This post is for educational and informational purposes only and is not investment advice. Consult a SEBI-registered advisor before investing.

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