Foreign Institutional Investors Withdraw ₹1.75 Lakh Crore from Indian Markets Amid Ongoing Uncertainty
FII exodus deepens in 2026 at Rs 1.75 lakh crore as April outflows swell to Rs 43,967 crore; FOMC next trigger
The Economic Times
Image: The Economic Times
Foreign Institutional Investors (FIIs) have sold off ₹43,967 crore (approximately $5.3 billion USD) in Indian equities in April 2026, contributing to a total exodus of ₹1.75 lakh crore (around $21 billion USD) this year. The ongoing geopolitical tensions and upcoming U.S. Federal Reserve decisions are expected to further influence market dynamics.
- 01FIIs sold ₹43,967 crore in April 2026, deepening the total exodus to ₹1.75 lakh crore.
- 02Domestic indices fell sharply, with the Nifty down 1.14% and Sensex down 1.29%.
- 03The selling trend has persisted for 10 consecutive months amid geopolitical concerns.
- 04Key upcoming events include the U.S. Federal Reserve's policy meeting on April 28-29.
- 05Investors are cautious due to a lack of clear sectoral leadership in the Indian market.
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In a significant downturn for the Indian equity market, Foreign Institutional Investors (FIIs) offloaded domestic shares worth ₹43,967 crore (approximately $5.3 billion USD) in April 2026, bringing the total exodus this year to ₹1.75 lakh crore (around $21 billion USD). This sustained selling trend has persisted for 10 consecutive months, driven by geopolitical tensions and a lack of clear sectoral leadership. On Friday alone, FIIs sold shares worth ₹8,827.87 crore, while Domestic Institutional Investors (DIIs) were net buyers at ₹4,700.71 crore. The Nifty index fell by 275.10 points (1.14%) to close at 23,897.95, and the Sensex dropped 999.79 points (1.29%) to settle at 76,664.21. Analysts suggest that the upcoming U.S. Federal Reserve meeting on April 28-29 could further impact market dynamics, as investors await policy decisions amidst ongoing U.S.-Iran tensions. The trend indicates a shift in global investment strategies, with funds moving to markets like Korea and Taiwan, reflecting India's diminished appeal in the global allocation landscape.
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The ongoing FII sell-off could lead to increased volatility in the Indian equity market, affecting the investment landscape for both domestic and foreign investors. This trend may also impact the availability of capital for businesses and influence stock prices.
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