Foreign Portfolio Investors sold an aggregate of approximately ₹2.6 lakh crore in Indian equities this calendar year through September end, offset by positive domestic mutual fund equity flows of ₹2.73 lakh crore.
FII outflows have been driven by higher US bond yields following recent Federal Reserve rate hikes and slowing corporate earnings growth relative to elevated market valuations.
Experts advise investors to audit their portfolios for large-cap stock overlaps, maintain asset allocation, and diversify into international funds or gold to manage short-term market volatility.