FPIs continue sell-off in April; pull out ₹48,213 crore from Indian equity market in 10 days

The foreign investors maintained their aggressive sell-off in Indian equities, withdrawing ₹48,213 crore ($5.14 billion) in the first 10 days of April, as rising geopolitical tensions and global macroeconomic uncertainties reduced risk appetite.

The sell-off follows a record outflow of ₹1.17 lakh crore (about $12.7 billion) in March, the worst monthly exodus on record. The sharp reversal comes after FPIs had infused ₹22,615 crore in February, marking the highest monthly inflow in 17 months.

With the latest withdrawals, total outflows by foreign portfolio investors (FPIs) have surged to ₹1.8 lakh crore in 2026 so far. In April alone, foreign investors withdrew equities worth ₹48,213 crore from the cash market till April 10, according to NSDL data.

Market participants attributed the sustained selling pressure to a combination of global macroeconomic headwinds and heightened geopolitical risks.

He also pointed out that markets such as South Korea and Taiwan are currently more attractive to FPIs, given their stronger earnings growth outlook compared to the relatively modest expectations for India in FY27.

Even the recent US-Iran ceasefire failed to arrest the selling momentum.

Angel One Senior Fundamental Analyst Vaqarjaved Khan told the news agency that FPIs used the relief rally as a liquidity window to exit further.

According to Khan, a reversal in flows would depend on three key 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.

Stock markets last week

The Indian stock market wrapped up the week on Friday, April 10, with its strongest weekly gains in over five years, surging 6%. The last comparable rally was seen in the first week of February 2021, when the SENSEX had gained 10%.

The NIFTY50 rose 1,337.5 points, or 5.9%, during the week, while the BSE SENSEX gained 4,230.70 points, or 5.8%.

During the week, the broader market outperformed the benchmark equity indices, with both the Nifty Midcap 100 and the Nifty Smallcap 100 climbing 8% each.

On the NIFTY50 index, Shriram Finance emerged as the top gainer of the week, rising 15.2%. Adani Enterprises and Tata Motors Passenger Vehicles followed with gains of 13.8% and 13%, respectively. Axis Bank advanced 12.8%, while Bajaj Auto added 12%.

On the flip side, Coal India led the losers with a decline of 3.4%, followed by Sun Pharmaceutical (-2.3%) and Infosys (-0.6%). ONGC and Tech Mahindra also ended the week lower, slipping 0.2% each.