FII selling worsens; foreign investors pull out Rs 26,000 crore from Indian equities in three days

Foreign institutional investors sold Indian equities worth around Rs 26,000 crore over three sessions, including Rs 10,148 crore on Thursday alone. The Nifty and Sensex each fell about 5.7% in September, while 2026 outflows have crossed Rs 2.5 lakh crore so far. Analysts attribute the selling to elevated US bond yields near 5.2%, high crude prices, and a shift in global allocation toward AI-heavy Asian markets such as South Korea and Taiwan, though they see current valuations as attractive for domestic investors.