Foreign Portfolio Investor (FPI) flows turned negative in September after positive flows in July and August. According to the latest depository data, FPIs have offloaded Indian equities worth 35,861 crore rupees last month. Out of the total net outflows, 45,537 crore rupees were withdrawn through sales on stock exchanges, as geopolitical uncertainty, elevated US bond yields, and crude oil prices weighed on investors’ risk appetite. However, the trend of FPI investment through the primary market continued last month, with FPIs infusing 9,676 crore rupees in the primary market in September.

Meanwhile, foreign investors also extended their selling to the debt market during the period under review. Last month, outflows from the debt securities through the Fully Accessible Route (FAR) stood at 10,431 crore rupees. FPIs withdrew 5,247 crore rupees through General Limit route and 5,049 crore rupees through Voluntary Retention Route (VRR).