FPI Selling Streak Hits 21 Sessions as West Asia Crisis Deepens
Foreign portfolio investors (FPIs) have continued their aggressive selling in April, pulling out ₹19,837 crore from Indian equity markets in just the first two trading sessions. This extended selling pressure has dragged the Nifty 50 down by nearly 11.2% over the past six weeks, reflecting weakening investor sentiment amid rising global uncertainty.
Global Tensions Trigger Risk Aversion
The ongoing tensions in West Asia have significantly increased risk aversion among global investors. Alongside this, surging crude oil prices and rising US bond yields have made dollar-denominated assets more attractive, leading to capital outflows from emerging markets like India.
Record-Breaking Outflows in March
After withdrawing over ₹1 lakh crore in March alone—marking the highest monthly outflow on record—FPIs have continued their selling spree into April. The cumulative outflows have now reached ₹1.37 lakh crore, with selling extending beyond three weeks continuously.
Persistent Pressure on Indian Markets
In March, FPIs pulled out ₹1.17 lakh crore, with an average daily outflow of around ₹6,198 crore, surpassing previous records seen during periods of high market valuations. The sustained selling pressure has weighed heavily on Indian equities.
Read Also : Top 5 Performing Stocks Analysts See Growing Up to 26% in a Year
From Optimism to Uncertainty
The Indian market had entered 2026 with optimism after a weak performance in 2025. However, escalating geopolitical tensions and energy supply disruptions have clouded the near-term outlook. Analysts warn that continued instability could lead to earnings downgrades in the coming months.
Temporary Relief, But Sentiment Reverses
Although FPIs briefly turned net buyers in February, supported by improving corporate earnings and easing valuation concerns, sentiment has since reversed sharply. The impact of the US-Iran conflict, along with a weakening rupee and rising oil prices, has further complicated India’s economic outlook, increasing concerns around inflation and growth.
Content Credit Goes To : Tredixo
