FPIs withdraw record ₹94,000 crore from Indian equities in October on attractive Chinese valuations

Foreign Portfolio Investors (FPIs) withdrew a record ₹94,000 crore from Indian equities in October, driven by attractive valuations in the Chinese market and elevated pricing of Indian stocks. This significant outflow, the highest ever in a single month, followed a nine-month high investment in September. The withdrawal was influenced by Chinese stimulus measures and geopolitical tensions, leading investors to reallocate funds to safer markets. The sustained selling pressure impacted market sentiment, causing the NSE’s Nifty index to drop by 8% from its peak. This trend reflects the volatility and sensitivity of emerging markets to global economic shifts2.