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FPIs Flee Indian Markets: $3 Billion Exodus Amidst Geopolitical Fears
11 Apr
Summary
- Foreign investors sold equities worth ₹28,375.86 crore in the week ending April 10.
- Selling pressure eased significantly after a Middle East ceasefire announcement.
- Despite outflows, Indian indices like Nifty 50 and Bank Nifty saw strong gains.
In the week concluding April 10, 2026, foreign portfolio investors (FPIs) divested a net ₹28,375.86 crore from Indian equities, according to NSDL data. This significant outflow moderated considerably as the week progressed, influenced by a ceasefire announcement in the Middle East that eased geopolitical tensions and improved global risk sentiment.
Despite the substantial foreign selling, totaling approximately $3.05 billion in equities, Indian benchmark indices demonstrated remarkable resilience. The Nifty 50 surged 5.89% to cross 24,000, while the Bank Nifty saw an 8.47% increase. This recovery was supported by domestic institutional investors absorbing much of the selling pressure.
Analysts suggest that while India's valuations have become fairer after recent corrections, markets like South Korea and Taiwan are currently viewed as more attractive for FPIs due to higher expected earnings growth. FPI activity in futures also indicated a trimming of index exposure while maintaining positions in single-stock futures.
