FPIs pull out ₹19,837cr from Indian equities in April
What's the story
Foreign Portfolio Investors (FPIs) have continued their exit from Indian equities, withdrawing a massive ₹19,837 crore in just the first two trading sessions of April. The withdrawal is largely attributed to the ongoing conflict in West Asia, rising crude oil prices, and continuous depreciation of the rupee. This comes after a record withdrawal of ₹1.17 lakh crore from domestic equities in March.
Market trends
Record outflow in March
The FPIs's withdrawal in April comes after a record outflow from domestic equities in March, marking the worst monthly outflow. Prior to this, February had seen a massive inflow of ₹22,615 crore, the highest monthly inflow in 17 months. So far in 2026, the total FPIs outflow has reached ₹1.5 lakh crore according to NSDL data.
Market analysis
Geopolitical tensions and macroeconomic challenges drive FPI exit
The sustained selling pressure by FPIs has been attributed to global macroeconomic challenges and increased geopolitical uncertainty. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the continuation of the war, rising crude oil prices above $100 per barrel, rupee depreciation, and dollar appreciation have triggered this record selling by FPIs. He also noted that the rupee has depreciated by around 4% since the war began.
Investment strategy
US bond yields and fixed-income assets impact FPI inflows
Himanshu Srivastava, the Principal-Manager Research at Morningstar Investment Research India, said high US bond yields have made fixed-income assets more attractive. This has led global investors to reallocate their portfolios away from equities. Despite the sustained selling by FPIs, Vijayakumar believes Indian market valuations are fair and even attractive in some segments. However, he added that FPI inflows can only resume if there is de-escalation on the war front and a decline in crude oil prices.