In April 2026, Foreign Portfolio Investors (FPIs) continued their selling trend in Indian equities, offloading stocks valued at ₹48,141 crore. The financial services sector was hit hardest, with outflows of ₹19,152 crore, followed by consumer services at ₹5,338 crore and healthcare at ₹4,481 crore. Other sectors like automobiles and FMCG also saw significant declines, reflecting a broader risk-averse sentiment among investors. The ongoing conflict in West Asia and its potential impact on the Indian economy, coupled with a depreciating rupee, have contributed to this trend. In March 2026, FPIs had already withdrawn ₹1,17,775 crore from Indian stocks, with the financial sector accounting for over 50% of that figure. Experts suggest that while current valuations of financial stocks may look attractive, geopolitical uncertainties and modest growth expectations for FY27 are keeping FPIs cautious. Dr. VK Vijayakumar from Geojit Investments noted that the liquidity of financial stocks makes them a primary target for FPIs during sell-offs. As the Q4FY26 earnings season approaches, volatility in FPI flows is expected to continue.