Foreign Investors Pull Out Rs 31,575 Crore from Indian Equities

In a significant move, foreign portfolio investors (FPIs) have withdrawn Rs 31,575 crore from India's equity markets in the first eleven days of April. This withdrawal comes in the wake of global market turbulence, sparked by sweeping tariffs imposed by the US on most nations, including India.

Shift in Investor Sentiment

This marks a notable shift from the previous month, where FPIs had made a net investment of Rs 30,927 crore in the six trading sessions from March 21 to March 28, reducing the overall outflow for March to Rs 3,973 crore. The volatility in global financial markets has been a key factor influencing FPI strategies.

Impact of Global Trade War

V K Vijayakumar, chief investment strategist at Geojit Investments, commented on the situation, stating, "The turbulence in global stock markets following President Trump's reciprocal tariffs has been impacting FPI investments in India too." He anticipates that a clearer pattern in FPI strategy will emerge once the current market chaos subsides.

Future Prospects for Indian Markets

Despite the current outflow, Vijayakumar remains optimistic about India's growth prospects. "In the medium term, FPIs are likely to turn buyers in India since both the US and China are heading for an inevitable slowdown as a result of the ongoing trade war. Even in an unfavourable global scenario, India can grow by 6% in FY26," he added.