FPIs Sold ₹35,861 Crore in September. Where Did They Still Invest?

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Foreign portfolio investors (FPIs) pulled a net ₹35,861 crore out of Indian equities in September 2026, reversing two months of buying.

Financial services recorded the largest outflow, followed by oil and gas, and automobiles. Together, these three sectors saw net selling of ₹26,213 crore.

Yet foreign investors continued to add money elsewhere. Consumer services, services and healthcare each attracted more than ₹2,000 crore in net investment.

Across the 23 equity categories in the sector-wise data, 14 recorded net selling and nine recorded net buying. September’s withdrawal was substantial, but it was uneven across sectors.

September reversed two months of buying

FPIs invested a net ₹20,199 crore in Indian equities in July and ₹29,631 crore in August. September’s outflow reversed roughly 72% of those combined inflows.

Month	Net FPI equity investment
July 2026	+₹20,199 crore
August 2026	+₹29,631 crore
September 2026	−₹35,861 crore

Selling was heavier in the second half of September. Net outflows rose from ₹14,116 crore in the first fortnight to ₹21,745 crore in the second.

These are net figures: purchases minus sales. An outflow means FPIs sold more than they bought during the period. It does not mean they stopped buying altogether or exited their existing investments.

Where FPIs sold and where they bought

Financial services led September’s selling by a wide margin, with an outflow of ₹13,147 crore. Oil, gas and consumable fuels followed at ₹6,854 crore, and automobiles and auto components at ₹6,212 crore.

At the other end, consumer services attracted the highest net inflow at ₹2,333 crore, narrowly ahead of services at ₹2,302 crore and healthcare at ₹2,117 crore.

Sector	September net FPI equity investment (₹ crore)
Financial Services	−13,147
Oil, Gas & Consumable Fuels	−6,854
Automobile and Auto Components	−6,212
Telecommunication	−3,414
Metals & Mining	−3,003
Fast Moving Consumer Goods	−3,001
Power	−2,223
Consumer Durables	−1,905
Capital Goods	−1,461
Construction Materials	−1,205
Information Technology	−998
Realty	−743
Others	−703
Media, Entertainment & Publication	−62
Forest Materials	+13
Diversified	+92
Chemicals	+95
Utilities	+161
Textiles	+646
Construction	+1,311
Healthcare	+2,117
Services	+2,302
Consumer Services	+2,333
Net equity investment	−35,861

Positive figures indicate net buying; negative figures indicate net selling. Monthly figures combine the two September fortnights. Sector names follow the source classification, including separate categories for Services and Consumer Services. Rounded sector figures may not sum exactly to the published aggregate.

Financial services led the selling, but remained the largest holding

Financial services recorded almost twice the outflow of oil, gas and consumable fuels, the next-largest category.

However, the size of a sector’s outflow needs to be read alongside the size of foreign investors’ existing holdings.

At September-end, FPIs held approximately $208.5 billion in financial-services equities. That represented about 30% of their total Indian equity assets under custody of $689.4 billion.

Financial services therefore remained their largest equity holding despite leading the month’s selling.

A large rupee outflow alone does not establish that a sector suffered the biggest proportional reduction in exposure. Comparing that would require accounting for the size of each sector’s holdings.

Selling also extended across several other categories. Telecommunications saw an outflow of ₹3,414 crore, while metals and mining and fast-moving consumer goods each recorded around ₹3,000 crore in net selling.

Information technology registered a smaller net outflow of ₹998 crore. That places it below several major sectors in September’s selling table, but it still finished the month with net selling.

Buying continued in consumer services, services and healthcare

The three largest inflow categories attracted a combined ₹6,752 crore during September:

Consumer services: ₹2,333 crore.
Services: ₹2,302 crore.
Healthcare: ₹2,117 crore.

Construction also drew ₹1,311 crore, followed by textiles at ₹646 crore. The remaining four positive categories recorded smaller inflows.

The differences within related areas are useful. Consumer services attracted investment while FMCG and consumer durables recorded outflows. Construction received money while construction materials and capital goods saw net selling.

These figures do not support treating all consumption-related or investment-related businesses as one group. Foreign flows varied across the individual categories.

They also do not establish why investors bought or sold. Sector totals combine transactions by many investors with different mandates, valuations and portfolio needs. They cannot, by themselves, prove a single explanation such as weaker demand, stronger earnings prospects or a shift towards defensive investments.

Debt also recorded an outflow

Foreign selling in September extended to Indian debt.

Across the general limit, Voluntary Retention Route (VRR) and Fully Accessible Route (FAR), FPIs withdrew a combined ₹20,727 crore.

Debt investment route	September net FPI investment (₹ crore)
General limit	−5,247
Voluntary Retention Route	−5,049
Fully Accessible Route	−10,431
Total	−20,727

The month’s data therefore does not show a broad shift from Indian equities into Indian debt: both recorded net outflows.

The six-month picture was different. From April through September 2026, equities recorded cumulative net outflows of approximately ₹1.29 lakh crore, while these debt routes together received net inflows of approximately ₹43,927 crore.

September’s debt withdrawal came within a half-year that remained positive for debt investment overall.

What these flows mean for an investor

FPI flows show where foreign investors were net buyers or sellers during a particular period. They are useful for tracking changes in market participation, but they need to be distinguished from two other measures.

Flows are not sector returns. A sector can record foreign selling while its share prices rise if demand from other investors absorbs that selling. Equally, foreign buying does not guarantee positive returns.

Flows are not the same as the value of holdings. Assets under custody change with share prices and, when expressed in dollars, exchange rates as well as purchases and sales. A fall in the dollar value of FPI holdings cannot be treated entirely as money withdrawn.

September’s figures show substantial selling in financial services, oil and gas, and automobiles, alongside continued buying in consumer services, services and healthcare.

For investors reviewing these sectors, the next questions concern company earnings, valuations and their own existing exposure. One month of foreign flows provides context for that assessment; it does not establish which sector will perform best next.

Data note: Figures are based on NSDL’s fortnightly sector-wise FPI investment reports. Monthly flows are calculated by adding the two fortnights for each month. April–September totals combine the corresponding monthly figures. Assets under custody are measured as of September 30, 2026. Minor differences can arise from rounding.

Sources

Disclaimer: This article is for information and educational purposes only and does not constitute investment advice or a recommendation to buy or sell any security or sector. FPI flows do not indicate future market performance. Investments are subject to market risks. Consult a SEBI-registered investment adviser before making investment decisions.