Foreign Portfolio Investors (FPIs) have maintained their selling trend in Indian equities at the start of April 2026, reflecting cautious global sentiment. Continued geopolitical tensions, rising crude oil prices, and currency depreciation have influenced investor behaviour.
The recent outflows follow a volatile period in March and indicate a shift in allocation preferences amid changing macroeconomic conditions.
FPIs withdrew ₹19,837 crore from Indian equities during the first two trading sessions of April. The selling activity has been primarily observed in the cash market, signalling a continuation of the cautious stance adopted by overseas investors.
The latest withdrawals come after significant selling in March, when FPIs pulled out approximately ₹1.17 lakh crore.
This marked a notable monthly outflow, contrasting with February, when foreign investors had invested ₹22,615 crore, indicating a brief period of inflows prior to the recent reversal.
With the addition of April’s selling, cumulative FPI outflows for 2026 have reached around ₹1.5 lakh crore. This trend reflects sustained pressure from external factors influencing global investment decisions.
Several macroeconomic and geopolitical elements are contributing to the ongoing outflows. Rising crude oil prices, linked to tensions in West Asia, have raised concerns about inflation and economic stability. At the same time, uncertainty in global markets has reduced risk appetite among investors.
The Indian rupee has weakened by nearly 4 per cent since the onset of the geopolitical conflict. Expectations of further depreciation have made Indian assets less attractive to foreign investors, prompting additional capital outflows.
Higher US bond yields have also played a role in shifting investment flows. As fixed-income instruments become relatively more attractive, global investors are rebalancing portfolios away from equities towards safer assets.
Sustained selling by FPIs has led to a moderation in market valuations, with certain segments appearing more reasonably priced. However, a reversal in flows may depend on easing geopolitical tensions and stabilisation in crude oil prices.
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The continuation of FPI outflows in early April reflects a combination of global uncertainty, currency pressures, and shifting investment preferences. While valuations may be adjusting, future inflows are likely to depend on improvements in external conditions and greater stability in global markets.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all related documents carefully before investing.
Published on: Apr 6, 2026, 11:26 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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