New Delhi: Foreign Portfolio Investors (FPIs) continued their relentless sell-off in Indian equities, pulling out Rs 60,847 crore ($6.5 billion) in April primarily due to escalating geopolitical tensions and global macroeconomic uncertainties that dampened risk appetite.
With the latest withdrawal, total outflows by FPIs have surged to Rs 1.92 lakh crore in the first four months of 2026, significantly exceeding the Rs 1.66 lakh crore outflow recorded in the entire calendar year 2025, according to NSDL data.
FPIs remained net sellers in all months of 2026 except February. They withdrew Rs 35,962 crore in January, followed by an infusion of Rs 22,615 crore in February, the highest monthly inflow in 17 months.
However, the trend reversed sharply in March, with a record outflow of Rs 1.17 lakh crore, and continued into April, with withdrawals of Rs 60,847 crore, the data showed.
Market participants attributed the sustained selling pressure to a mix of global macroeconomic headwinds and heightened geopolitical risks.
Himanshu Srivastava, Principal Manager Research at Morningstar Investment Research India, said April began with heavy selling as escalating tensions in the Middle East pushed crude oil prices higher, reviving concerns around global inflation.
This, in turn, led to reduced expectations of near-term rate cuts and kept global bond yields elevated, weighing on investor sentiment towards emerging markets, including India.