FPIs turn cautious on Indian stocks amid global headwinds; what could improve the foreign flow outlook

FPI outflows from Indian equities reached Rs 2.69 lakh crore in 2026 after September saw Rs 35,860 crore in sales and October added Rs 18,513 crore in just two sessions. The Nifty 50 has fallen for eight straight weeks, its longest losing streak in 25 years, with year-to-date losses at 14%. Key headwinds include Brent crude above $100, US 10-year yields at 5.34% (highest since 2002), rupee around Rs 96.32, and portfolio rotation away from non-AI markets, while the RBI policy decision on October 7 is the next major trigger.