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Sitharaman Says India’s Equity Liquidity Helps Foreign Investors Exit

Foreign institutions recorded ₹35,861 crore in net equity sales in September as domestic institutions made ₹76,030 crore in net purchases, AMFI reported.

Updated 2 min read
Delegates enter a conference venue in Bangkok, Thailand, under overcast skies. (AI-generated image / EconoTimes)
Delegates enter a conference venue in Bangkok, Thailand, under overcast skies. (AI-generated image / EconoTimes)

CNBC reported that Finance Minister Nirmala Sitharaman sees India’s equity-market liquidity as making it easier for foreign investors to exit, with September figures showing domestic institutions recorded net purchases as foreign institutions sold shares.

The interview took place in Bangkok on Friday, Oct. 16, during the annual meetings of the International Monetary Fund (IMF) and World Bank Group, CNBC reported. India’s Ministry of Finance had scheduled her visit for Oct. 14-18.

The Association of Mutual Funds in India (AMFI) reported net foreign institutional equity sales of ₹35,861 crore in September 2026. Domestic institutions made net equity purchases of ₹76,030 crore. Separately, equity mutual funds received ₹38,307 crore in net inflows, extending their run of positive monthly flows to 67 months.

The figures describe different kinds of activity. Institutional totals track net equity trading, while the mutual fund figure measures money entering equity funds. The aggregates show domestic institutions buying during a month when foreign institutions were net sellers, but do not identify who bought shares in any specific foreign sale.

The Nifty 50 total-return index fell 6.0% in September, AMFI said. The decline alongside domestic purchases and fund inflows shows that those flows did not prevent a monthly drop in the index; the figures do not establish that liquidity caused the decline.

CNBC also reported that Sitharaman expressed concern about capital moving toward artificial intelligence and the United States. The September data do not show how that concern relates to individual investors’ decisions or returns.

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