In comparison, the debt market saw huge inflow of around Rs 18,000 crore during the period.
Foreign investors were gross buyers of equities worth Rs 69,317 crore last month and sellers to the tune of Rs 70,488 crore, registering a net outflow of Rs 1,171 crore (USD 190 million), according to the latest data.
The was also the first instance of monthly withdrawal by overseas investors (Foreign Institutional Investors or Foreign Portfolio Investors) since August last year, when they had pulled out Rs 5,923 crore.
The latest outflow comes after overseas investments in the stock market hit seven months low in September.
"We have witnessed an outflow in this month mainly due to profit booking and the market is also in a consolidation mode," CNI Research Head Kishor Ostwal said.
He further said that the long-term prospects of staying invested in India are still positive.
Since the beginning of this year, overseas investors have infused a net amount of Rs 82,266 crore (USD 13.7 billion) into the equities, while they invested a net of Rs 1.36 lakh crore into the debt market (USD 22.5 billion) taking the total to Rs 2.18 lakh crore (USD 36 billion).
From the beginning of June, FIIs along with sub-accounts and qualified foreign investors have been clubbed together by capital market regulator Sebi to create a new investor category called FPIs.
Strong inflows in the recent months have taken the cumulative net investments of foreign investors into India to over USD 207 billion since 1991. In rupee terms, their investments are at Rs 10 lakh crore level during the period.