Foreign Portfolio Investors (FPIs) have continued their sell-off in Indian equities, withdrawing ₹60,847 crore (approximately $6.5 billion) in April 2026. This withdrawal has contributed to a staggering total outflow of ₹1.92 lakh crore in the first four months of the year, exceeding the ₹1.66 lakh crore outflow recorded for the entirety of 2025, according to data from the National Securities Depository Limited (NSDL). FPIs have been net sellers in all months of 2026 except for February, which saw an infusion of ₹22,615 crore, the highest monthly inflow in 17 months. The trend reversed sharply in March, with a record outflow of ₹1.17 lakh crore. Market analysts attribute the sustained selling pressure to global macroeconomic headwinds and heightened geopolitical risks, particularly the escalating tensions in the Middle East that have pushed crude oil prices above $100 per barrel. This has raised concerns about global inflation and reduced expectations for near-term interest rate cuts. Experts suggest that if the ceasefire in Iran holds and crude oil prices stabilize below $90 per barrel, there could be a potential for selective FPI inflows, supported by strong domestic institutional buying of approximately ₹1.7 lakh crore year-to-date and an expected 16% CAGR in Nifty earnings from FY26 to FY28. However, they caution that any resurgence in geopolitical tensions or spikes in US bond yields could trigger renewed selling pressure.