Mumbai: Foreign Portfolio Investors (FPIs) have started April on a weak note, pulling out Rs 19,837 crore from Indian stock markets in just the first two trading sessions. This sharp selling comes after a massive withdrawal in March, showing that global investors are still cautious about India.
According to data from National Securities Depository Limited, total FPI outflows in 2026 have now reached around Rs 1.5 lakh crore. This reflects sustained pressure on Indian equities from global factors.
March Saw Record Outflows
The selling trend is not new. In March, FPIs pulled out a record Rs 1.17 lakh crore, making it the worst monthly outflow ever. Interestingly, just a month before that, February had seen strong inflows of Rs 22,615 crore — the highest in 17 months.
This sharp reversal highlights how quickly global sentiment can change.
Key Reasons Behind Selling
Experts say multiple global factors are driving this continuous sell-off:
- Ongoing conflict in West Asia has increased uncertainty in global markets
- Crude oil prices have surged above USD 100 per barrel
- The Indian rupee has weakened by about 4% since the conflict began
- The US dollar has strengthened, making emerging markets less attractive
VK Vijayakumar said that rising crude prices, a weak rupee, and strong dollar are the main reasons behind heavy FPI selling.
US Bond Yields Also a Factor
Another important reason is the rise in US bond yields. Higher returns in the US bond market are attracting global investors, leading them to shift money away from equities like India.
Himanshu Srivastava explained that better returns in fixed-income assets are prompting investors to rebalance their portfolios.
What Lies Ahead?
Despite the heavy selling, experts believe that valuations in Indian markets have now become more reasonable, and some sectors may even look attractive for long-term investors.
However, a real comeback in FPI inflows will depend on easing geopolitical tensions and a fall in crude oil prices.
