Foreign Investors Sell $3.2 Billion in Indian Assets

Foreign investors are withdrawing significant capital from India following a surge in oil prices and rising global yields. These economic pressures threaten to reverse a recent recovery in demand for local assets.

In September 2026, global funds sold $2.1 billion in local equities and $1.1 billion in index-eligible sovereign bonds. The bond outflows are on track to be the largest since March, pushing the 10-year government bond yield to a two-year high.

Despite the Government of India implementing a special dollar deposit program to provide support, the Indian rupee remains among the worst-performing currencies in Asia for the current quarter.