Foreign investors withdraw ₹60,800cr from equities in April
What's the story
Foreign Portfolio Investors (FPIs) have pulled out a whopping ₹60,847 crore ($6.5 billion) from Indian equities in April. The massive withdrawal comes amid rising geopolitical tensions and global macroeconomic uncertainties that have affected investor sentiment. The latest outflows have pushed total FPI withdrawals to ₹1.92 lakh crore in the first four months of 2026, exceeding the entire calendar year's pullout of ₹1.66 lakh crore in 2025, data from the National Securities Depository (NSDL) shows.
Market trend
Brief recovery in February
FPIs have mostly been net sellers this year, with February being the only exception. The year started with outflows of ₹35,962 crore in January. However, there was a brief recovery in February when foreign investors infused ₹22,615 crore, the highest monthly inflow in 17 months. But sentiment deteriorated sharply in March, with a record outflow of ₹1.17 lakh crore, and it continued into April amid ongoing risk aversion among global investors.
Investor concerns
Geopolitical tensions, global macroeconomic challenges
Market experts attribute the continued outflows to global macroeconomic challenges and heightened geopolitical risks. Rising tensions in the Middle East have pushed crude oil prices higher, reviving inflation fears and dimming prospects for near-term interest rate cuts globally. High bond yields, especially in the US, have also diminished the attractiveness of emerging markets like India.
Market evaluation
Domestic factors at play
The spike in crude prices above $100 per barrel, a depreciating rupee, and worries over India's current account deficit have made domestic equities look expensive. Benchmark indices are trading at high valuation multiples, making foreign investors reconsider their exposure. Despite the continued selling by FPIs, strong domestic institutional investor (DII) inflows, estimated at around ₹1.7 lakh crore this year, have cushioned the impact on markets.
Market outlook
What next?
Market experts say stability in crude prices and easing geopolitical tensions could support a recovery in foreign inflows, though risks remain. They warn that any escalation in global tensions, especially around key oil supply routes or a further spike in US bond yields, could trigger renewed selling pressure in the near term.