Mumbai, October 9, 2026: Foreign portfolio investors (FPIs) pulled a net ₹35,861 crore from Indian equities in September 2026, reversing net inflows of ₹29,628 crore recorded in August, according to the latest sector-wise FPI/FII flows study by PL Capital (Prabhudas Lilladher). The outflows ended a two-month streak of positive foreign investment in July and August.
The September selloff was broad-based, with Financial Services seeing the largest outflow at ₹13,147 crore, a sharp reversal from ₹10,494 crore of inflows in August and nearly six times its long-term average monthly outflow of ₹2,237 crore. Oil, Gas & Consumable Fuels followed with outflows of ₹6,854 crore, more than triple its long-term average, while Automobile & Auto Components saw ₹6,212 crore in net selling after August inflows of ₹3,106 crore.
Sector-wise FPI flows and trends
Other sectors with significant outflows included Telecommunication (₹3,414 crore), Metals & Mining (₹3,003 crore), and FMCG (₹3,001 crore). Both Telecommunication and FMCG have experienced net foreign selling every month in 2026 so far. Power (₹2,223 crore), Consumer Durables (₹1,905 crore), Capital Goods (₹1,461 crore), and Construction Materials (₹1,205 crore) also recorded net selling. Information Technology posted a relatively modest outflow of ₹998 crore, remaining well below its long-term average outflow of ₹2,752 crore.
In contrast, Consumer Services attracted the highest inflow at ₹2,333 crore, marking its fourth consecutive month of positive flows. Services (₹2,302 crore), Healthcare (₹2,117 crore), and Construction (₹1,311 crore) also saw net foreign investment. Textiles drew ₹646 crore, exceeding its near-flat long-term average. All four sectors recorded inflows above their long-term monthly averages, with Healthcare inflows nearly six times its average.
Year-to-date and quarterly FPI patterns
For January to September 2026, cumulative sectoral FPI outflows stood at about ₹2.60 lakh crore. Financial Services accounted for the largest share at ₹1,14,800 crore, followed by Automobile & Auto Components (₹38,560 crore), Oil, Gas & Consumable Fuels (₹37,520 crore), FMCG (₹32,720 crore), and Telecommunication (₹31,550 crore). Sectors benefiting from foreign inflows in the period included Metals & Mining (₹16,560 crore), Capital Goods (₹14,020 crore), and Services (₹12,580 crore).
PL Capital’s quarterly analysis indicated a gradual shift in FII sector weightage, with Banks’ share declining to 26.19% in Q1FY27 from 30.21% a year earlier, and IT dropping to 16.04% from 19.35%. Meanwhile, Electricals rose to 17.15% from 13.28%, and Non-Ferrous Metals increased to 16.09% from 13.39% over the same period.
Analyst commentary on sector rotation
Mannat Gandhi, Research Analyst – Quant at PL Capital, said September marked a clear change in foreign investor sentiment, with selling focused on Financials, Energy, and Automobiles, while Consumer Services, Services, and Healthcare continued to attract inflows well above long-term averages. Gandhi noted that the quarterly data also reflected a shift in FII allocations away from Banks and IT towards Electricals and Non-Ferrous Metals, and advised that monthly flows should be considered alongside earnings and valuations.
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