Foreign Portfolio Investors Withdraw Heavily from Indian Markets

Foreign Portfolio Investors (FPIs) have withdrawn a staggering Rs 31,575 crore from Indian equity markets in April, as global uncertainty mounts over sweeping tariffs imposed by the United States, including on India. This marks a significant shift from the net investment of Rs 30,927 crore observed in just six trading sessions between March 21 and March 28.

Market Sentiment and Future Outlook

According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the turbulence in global stock markets following President Trump's reciprocal tariffs has impacted FPI investments in India. However, he remains optimistic about the medium-term prospects, citing India's potential to grow at 6 per cent in FY26 and attract FPI investments once the current chaos subsides.

India's Strong Macro Fundamentals

Vinit Bolinjkar, Head of Research at Ventura Securities, attributes the current sell-off to macroeconomic and geopolitical risks but emphasizes India's robust domestic demand and favorable long-term positioning due to ongoing trade realignment.

Apart from equities, FPIs also pulled out Rs 4,077 crore from the debt general limit and Rs 6,633 crore from the debt voluntary retention route, indicating a broad-based retreat.