AI flows and bond yields pressure Indian equities
after close2 sources ↓machine-written, see hownot a recommendation
- NIFTY close
- ₹22,699
- On the day
- -0.22%
- 52-week high
- ₹23,489
- 52-week low
- ₹22,180
Foreign portfolio investors have withdrawn a net ₹2.96 lakh crore from Indian equities so far in 2026, with PwC India’s Ranen Banerjee identifying three drivers: the global rush towards artificial intelligence opportunities, rising government bond yields in developed economies and relatively high valuations in India. The latest ANI report adds that FPI outflows reached ₹36,164 crore through 28 Oct, after ₹35,861 crore in September. 🤖
The selling was uneven across the year. ANI reported outflows of more than ₹1.17 lakh crore in March, followed by ₹60,847 crore in April and ₹49,340 crore in June. These figures show that foreign selling was concentrated in several high-outflow months rather than spread evenly across the year. Banerjee said Indian equities have appeared overvalued to overseas investors, reducing their appeal as global capital searches for alternative returns.
The allocation pressure extends beyond India’s valuation premium. Rising government bond yields in developed markets can make fixed-income assets more attractive relative to equities, while global AI-related investment creates a competing destination for institutional money. The effect is relevant for the capital-markets and financial-services sectors because sustained FPI selling can weigh on liquidity, sector leadership and the valuation multiples investors are willing to pay. Technology 💻 and fixed income remain important indirect channels for those flows.
OI Charts data showed the Nifty closing at ₹22,699 on 28 Oct 2026, down 0.22% for the session, with volume of 294,951,884. The index remained below its 52-week high of ₹23,489 recorded on 22 Sep 2026 and above its 52-week low of ₹22,180 from 8 Oct 2026. It declined 1.9% over five sessions and 1.6% over 20 sessions, keeping recent market momentum weak. 📉
Investors should track the next cumulative FPI-flow updates, developed-market government bond yields and the pace of global AI investment. The Nifty’s ₹22,180 recent low and ₹23,489 52-week high remain observable reference levels for judging whether selling pressure is intensifying or easing. ⚖️
Source: The Tribune, 29 Oct 2026; ANI News, 29 Oct 2026
Not investment advice. For informational purposes only.