New Delhi, 06 April (H.S.): Foreign portfolio investors (FPIs) have prolonged their equity divestment spree into April, dumping ₹19,837 crore worth of shares in the Indian market during the first two trading days on April 1 and 2, echoing March's record outflows.
Last month, FPIs net sold a staggering ₹1.17 lakh crore—the highest ever, surpassing October 2024's ₹94,017 crore benchmark—across limited sessions, with markets closed for Good Friday on April 3. Year-to-date 2026 outflows now exceed ₹1.50 lakh crore, according to National Securities Depository Limited (NSDL) data.
Drivers of Global Risk Aversion
Escalating West Asia conflicts involving the US, Israel, and Iran have intensified worldwide tensions, prompting FPIs to repatriate funds from equities globally for safety. Crude oil prices remain above $100 per barrel, weakening the rupee by nearly 4% since hostilities began and bolstering the dollar, redirecting capital to US markets.
Prior to March, February saw FPIs inject ₹22,615 crore—the largest inflow in 17 months—breaking a selling trend that started post-October 2024. However, geopolitical fears have since dominated.
Ravi Chandar Khurana, CEO of Khurana Securities and Financial Services, states that FPI repatriation to India remains unlikely amid ongoing instability and elevated oil prices. Relief may come only with de-escalation and crude stabilization.
The sustained selling has compressed valuations across market segments, rendering select stocks attractive for savvy investors. Khurana advises consulting market experts and exercising utmost caution given the volatility to avoid substantial losses.
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Hindusthan Samachar / Jun Sarkar
