Mumbai, September 20 (Daily Kiran) : Foreign portfolio investors (FPIs) have recorded an outflow of ₹23,676 crore from September 1 to 19, 2026. This marks a significant shift, as FPIs were net buyers in both July and August, according to analysts.
Despite the outflow, foreign investors have remained active in the primary market, investing approximately ₹2,703 crore so far this month. This brings the total FPI investment for 2026 to ₹48,550 crore. Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the ongoing strength in the primary market helps explain the sluggish performance in the secondary market.
Last week, the markets closed lower, impacted by rising crude oil prices and increased global bond yields, which affected investor sentiment. Concerns about inflation stemming from high energy prices and their implications for economic growth persist.
The Sensex fell by 0.65 percent to close at 74,294.46, while the Nifty declined by 0.22 percent to finish at 23,346.40. Analysts observed that after several weeks of strong performance, there was little movement in major indices like mid-cap and small-cap during a volatile week.
Crude oil prices and rising global bond yields have remained key factors influencing market sentiment. The U.S. Federal Reserve’s recent interest rate hike of 25 basis points has added to uncertainties regarding global liquidity conditions.
Looking ahead, the ongoing tensions between Iran and the U.S. and their impact on crude oil prices are expected to significantly affect FPI flows. Elevated oil prices and high U.S. bond yields (with the 10-year yield at 5 percent) pose negative implications for the Indian equity market and FPI flows. However, market experts believe that the strength of the Indian economy and improved earnings expectations provide a positive outlook.
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