Foreign Investors Withdraw ₹60,847 Crore in April Amid Geopolitical Tensions
FPIs pull out ₹60,847 crore in April; 2026 outflows hit ₹1.92 trillion
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In April 2026, Foreign Portfolio Investors (FPIs) withdrew ₹60,847 crore (approximately $6.5 billion) from Indian equities, driven by geopolitical tensions and macroeconomic uncertainties. Total outflows for the year have reached ₹1.92 trillion, surpassing the entire outflow of ₹1.66 trillion in 2025.
- 01FPIs pulled out ₹60,847 crore in April 2026, marking a significant withdrawal amid global uncertainties.
- 02Total outflows for the first four months of 2026 reached ₹1.92 trillion, exceeding the full-year outflow of 2025.
- 03Geopolitical tensions, particularly in West Asia, have heightened concerns over inflation and interest rates.
- 04Analysts suggest that stabilization of crude oil prices could lead to a recovery in FPI inflows.
- 05Domestic institutional investors have been active, with year-to-date buying of around ₹1.7 trillion.
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Foreign Portfolio Investors (FPIs) continued their sell-off in Indian equities, withdrawing ₹60,847 crore (approximately $6.5 billion) in April 2026. This brings the total outflows for the year to ₹1.92 trillion, significantly surpassing the ₹1.66 trillion outflow recorded for the entire year of 2025, according to data from the National Securities Depository Limited (NSDL). FPIs have been net sellers in all months of 2026 except February, which saw an inflow of ₹22,615 crore, the highest in 17 months. The sustained selling pressure is attributed to global macroeconomic headwinds and heightened geopolitical risks, particularly escalating tensions in West Asia that have pushed crude oil prices above $100 per barrel. Analysts warn that these factors, coupled with a weakening rupee and rising inflation concerns, have made Indian equities appear expensive, with the Nifty index trading at about 21 times price-to-earnings. However, if geopolitical tensions ease and oil prices stabilize, there may be a potential for selective FPI inflows supported by strong domestic institutional buying, which has totaled around ₹1.7 trillion year-to-date.
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The significant outflows could lead to increased volatility in Indian equity markets, affecting investor sentiment and potentially impacting the cost of capital for businesses.
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