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Below the Quote on FPI flows 3rd Oct 2026 from Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

“FPIs turned heavy sellers in September with total equity selling of Rs 45536 crores. They continued to invest through the primary market with investment of Rs 9676 crores in September. The positive FPI flows in July and August on expectations of decline in crude prices turned out to be a temporary phenomenon. 

FPI selling in the recent days has been huge. The surge in the US 10-year bond yield to above 5.2 % and concern that crude might remain elevated for longer also influenced the renewed FPI selling. Sustained FPI selling has significantly weakened the Indian market which witnessed eight consecutive weeks of losses. The poor monsoons this year with 13% deficient rains also impacted sentiments. 

The sharp correction in the market has made the valuations of large-caps attractive. But a reversal of the FPI selling will need positive developments including decline in crude and US bond yields. In the coming days, the market will be influenced by the FY27 Q2 results. Companies that report good Q2 numbers along with positive management commentary are likely to witness buying. Sustained buying by DIIs and retail investors has been supporting the market preventing a major crash.”

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