# Foreign Investors Pull $3.2 Billion From Indian Stocks, Sovereign Bonds By Enna Lee Canonical URL: https://www.tokenpost.com/news/investing/25720 Published: 2026-09-30T09:54:15.000Z Updated: 2026-09-30T09:54:15.000Z Section: Investing > September outflows accelerated as Brent crude returned above $100 a barrel, while higher global yields and a weaker rupee pressured Indian assets. Foreign investors withdrew $3.2 billion from Indian stocks and index-eligible sovereign bonds in September as higher oil prices, global yields and a weaker rupee pressured emerging-market assets. Investors sold $2.1 billion of Indian stocks and $1.1 billion of index-eligible sovereign bonds during the month, marking the fastest pace of outflows since March. Brent crude returned above $100 a barrel, reaching about $103 in Asian trading Sept. 30. West Texas Intermediate crude traded near $89, while Brent briefly rose above $107. The rupee fell to 96.1450 per dollar on Sept. 29. India’s dependence on imported crude makes it vulnerable to higher energy costs. A sustained oil rally can increase inflation, weaken the rupee and reduce dollar-denominated returns for overseas investors, while limiting the central bank’s room to ease policy. “Oil will be the biggest factor determining whether India sees renewed foreign outflows,” said Gautam Chhaochharia, head of global markets India at UBS Group. Net foreign-equity outflows totaled 17,131 crore rupees through Sept. 27. Exchange selling totaled 25,682 crore rupees, partly offset by 8,551 crore rupees of primary-market investment. Debt outflows totaled 7,385 crore rupees through the Fully Accessible Route, 3,021 crore rupees through the Voluntary Retention Route and 1,889 crore rupees through the General Limit route during the period. The figures differ from a separate estimate of $3.7 billion in foreign withdrawals from Indian equities and bonds because the datasets use different asset categories and cutoff dates. The $3.2 billion calculation covers stocks and index-eligible sovereign bonds and does not represent total foreign selling across all Indian debt markets. Foreign investors returned to Indian assets in April, May, June and July after heavy withdrawals in March. June inflows coincided with lower oil prices and a temporary reopening of the Strait of Hormuz. Higher U.S. and global bond yields also pressured emerging-market assets. Fesa Wibawa, investment manager for fixed income Asia at Aberdeen Investments, said the selling reflected broader bond-market weakness more than a reassessment of India’s fundamentals. “The recent foreign selling should be viewed primarily in the context of the broader global bond-market correction, rather than as a fundamental reassessment of India,” Wibawa said. The renewed pressure follows [earlier declines in Indian stocks as oil prices rose and foreign investors sold](). ## Links in this article - [earlier declines in Indian stocks as oil prices rose and foreign investors sold](https://www.tokenpost.com/news/investing/24850)