US bond yields India markets – Bharat Pulse News

Foreign Portfolio Investors turned net sellers in September, withdrawing ₹35,860 crore from Indian equities as elevated crude oil prices, rising US bond yields and wider global uncertainty weighed on investor sentiment. FPIs Pull ₹35,860 Crore From Indian Equities The September outflow marked a sharp reversal after foreign investors had collectively invested around ₹49,830 crore in Indian equities during July and August. The selling pushed total FPI withdrawals from Indian equities in 2026 to around ₹2.69 lakh crore, highlighting continued caution among overseas investors despite India’s underlying economic growth. Foreign selling has also contributed to pressure on benchmark stock indices and the rupee. High Oil Prices and US Yields Drive FPI Selling One of the main factors behind the withdrawal has been the sharp rise in US Treasury yields, which has made American fixed-income assets more attractive relative to emerging markets. Higher crude oil prices have added another layer of concern for India, which imports most of its energy requirements. Persistently expensive oil can increase inflation, widen the trade deficit and put further pressure on the rupee. Geopolitical uncertainty and a stronger US dollar have also encouraged global investors to reduce risk exposure. Indian Markets Face Continued Foreign Selling Indian equities suffered a difficult September, with the Nifty 50 falling more than 6% during the month amid sustained foreign selling and global rate concerns. Domestic institutional investors have helped absorb some of the overseas withdrawals, limiting the impact on market liquidity. However, foreign investor sentiment is likely to remain sensitive to crude oil prices, US interest rates, the rupee and upcoming corporate earnings.

FPIs Pull ₹35,860 Crore From Indian Equities

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