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

Foreign portfolio investors shifted to net selling in September, offloading stocks worth ₹35,860 crore, continuing into October with ₹18,513 crore. This trend caused the Nifty to decline 14% year-to-date, its worst since 2011, as geopolitical tensions and surging bond yields deter investments.