Foreign Institutional Investors Record Significant Outflows of Rs 48,213 Crore in April, Bringing Year-to-Date Withdrawals Close to Rs 1.8 Lakh Crore

FPIs Continue Heavy Selling in Indian Equities, Pull Out Rs 48,213 Crore in April

Foreign portfolio investors (FPIs) have continued their heavy selling in Indian equities, withdrawing Rs 48,213 crore (USD 5.14 billion) in the first 10 days of April. This outflow comes as rising geopolitical tensions and global macroeconomic uncertainty have dampened risk appetite.

The latest exodus follows a record outflow of Rs 1.17 lakh crore in March, marking a sharp reversal from February when FPIs had infused Rs 22,615 crore, the highest monthly inflow in 17 months. Total FPI outflows in 2026 have surged to around Rs 1.8 lakh crore, according to data from the National Securities Depository Ltd (NSDL). In April alone, the withdrawals have been concentrated in the cash market.

Market experts attribute the sustained selling pressure to a mix of global headwinds and elevated geopolitical risks. Elevated crude oil prices and revived global inflation concerns are being driven by escalating tensions in West Asia. This has pushed risk aversion to new heights.

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FPIs have been driven to a "sell mode" due to concerns over the spillover impact of the energy crisis linked to the West Asia conflict on the Indian economy, along with the continued depreciation of the rupee. Alternative markets such as South Korea and Taiwan are currently drawing more FPI interest due to their stronger earnings growth outlook, compared to relatively modest expectations for India in FY27.

Even the recent US-Iran ceasefire failed to reverse the trend, with FPIs using the relief rally as an opportunity to exit. A turnaround in flows would depend on key triggers, including a credible reopening of the Strait of Hormuz, stabilisation in the rupee, and a positive surprise from India’s Q4 earnings season.