MUMBAI, Oct. 6 -- India has become cheaper, but foreign investors are still selling.

That apparent contradiction captures the problem facing Indian equities. Foreign portfolio investors (FPIs) sold Rs.3.16 trillion worth of shares through stock exchanges in the first nine months of 2026, while investing Rs.55,524 crore through the primary market, according to data from the National Securities Depository Ltd (NSDL).

The buying offset nearly 18% of their exchange-based selling, leaving net equity outflows of Rs.2.60 trillion through September. The split suggests foreign investors have not abandoned India-but are becoming more selective about where they put money.

The divergence was particularly stark in September. FPIs sold Rs.45,537 cro...