FPIs withdraw ₹48,000cr from Indian equities in April
What's the story
Foreign portfolio investors (FPIs) have continued their aggressive sell-off in the Indian equities, withdrawing ₹48,213 crore (approximately $5.14 billion) in the first 10 days of April. The trend is mainly due to rising geopolitical tensions and global macroeconomic uncertainties that have lowered risk appetite among investors. The latest withdrawal comes after a record outflow of ₹1.17 lakh crore in March, marking the worst monthly exodus on record.
Market impact
Outflows exceed ₹1.8L crore mark in 2026
The latest withdrawals have pushed the total outflows by the FPIs to ₹1.8 lakh crore in 2026 so far. The trend is mostly attributed to a combination of global macroeconomic headwinds and heightened geopolitical risks. Himanshu Srivastava, the Principal-Manager Research at Morningstar Investment Research India, said that risk aversion has increased due to escalating tensions in West Asia, which have raised crude oil prices and revived global inflation concerns.
Investor strategy
Energy crisis concerns keep FPIs in 'sell mode'
VK Vijayakumar, the Chief Investment Strategist at Geojit Investments, highlighted the broader fallout of the energy crisis related to the West Asia conflict. He said concerns over its spillover impact on the Indian economy and continued rupee depreciation have kept FPIs firmly in 'sell mode.' Notably, even a recent US-Iran ceasefire failed to reverse this trend.
Market response
Turnaround in flows dependent on macro conditions
Vaqarjaved Khan, a Senior Fundamental Analyst at Angel One, said FPIs used the relief rally from the US-Iran ceasefire as an exit opportunity. He noted that a turnaround in flows would depend on key triggers like a credible reopening of the Strait of Hormuz, stabilization in the rupee, and positive surprises from India's Q4 earnings season. "Flows can reverse quickly, but only if macro conditions begin to support the shift," he added.