Foreign investors extend April sell-off; Rs 48,213 crore withdrawn in 10 days

Foreign portfolio investors (FPIs) continued their selling trend in Indian equities in April, withdrawing Rs 48,213 crore (USD 5.14 billion) in the first 10 days of the month, amid rising geopolitical tensions and global macroeconomic uncertainty.

The sustained outflow follows a record withdrawal of Rs 1.17 lakh crore (about USD 12.7 billion) in March, marking the worst monthly exodus on record. This comes after FPIs had invested Rs 22,615 crore in February, which was the highest monthly inflow in 17 months.

With the latest withdrawals, total outflows by FPIs have reached Rs 1.8 lakh crore in 2026 so far. Data from NSDL shows that foreign investors pulled out equities worth Rs 48,213 crore from the cash market between April 1 and April 10.

Market participants said the continued selling pressure is driven by global macroeconomic headwinds and heightened geopolitical risks.

Himanshu Srivastava, Principal – Manager Research at Morningstar Investment Research India, said selling activity was largely due to risk aversion caused by escalating tensions in West Asia, which pushed up crude oil prices and renewed concerns over global inflation.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the energy crisis linked to the West Asia conflict, along with its potential impact on the Indian economy and continued depreciation of the rupee, has kept FPIs in a selling phase.

He added that markets such as South Korea and Taiwan are currently more attractive for FPIs due to stronger earnings growth outlooks compared to relatively modest expectations for India in FY27.

Even the recent US-Iran ceasefire did not reverse the trend.

“FPIs used the relief rally as a liquidity window to exit further,” said Vaqarjaved Khan, Senior Fundamental Analyst at Angel One.

Khan said a reversal in flows would depend on three factors — credible reopening of the Strait of Hormuz, stabilisation of the rupee, and a positive surprise from India’s Q4 earnings season.

“Flows can reverse quickly, but only if macro conditions begin to support the shift,” he added.

(With inputs from agencies)