In October 2024, foreign portfolio investors (FPIs) withdrew a record-breaking ₹1.14 lakh crore from Indian equities, driving the Nifty 50 and S&P BSE Sensex down by 6.22% and 5.83%, their sharpest monthly losses since March 2020.
Key reasons included slowing earnings growth, high stock valuations, rising geopolitical tensions, and concerns over China. Domestic institutional investors (DIIs) stepped in, purchasing ₹1.07 lakh crore to limit further losses. Meanwhile, FPIs favored the primary market, investing around ₹20,000 crore there, while the Indian rupee dropped to an all-time low of ₹84.20 per USD.