After buying Indian equities in July and August, foreign portfolio investors turned heavy sellers in September as crude oil rose, US bond yields surged and the rupee weakened. FPIs sold over Rs 25,000 crore of Indian shares in September, the highest monthly outflow in six months, as higher oil prices and elevated bond yields hurt the appeal of Indian assets.
Analysts say FPI selling was even sharper on a broader equity-flow basis. They turned heavy sellers in September with total equity selling of Rs 45,536 crore.