In a major market shift, foreign investors have pulled out a whopping ₹10,355 crore from Indian equities in the first week of April.
The move comes in response to US President Donald Trump’s announcement of reciprocal tariffs on several countries.
The decision comes amid rising global uncertainty and increased risk aversion in financial markets across the world.
FPI withdrawal follows a brief period of inflow
Market fluctuation
The latest exit by FPIs comes after a brief spell of increased inflows in March.
In March, net outflows were curbed to ₹3,973 crore due to heavy foreign inflows in the last week. It was a stark improvement from the net selling of ₹34,574 crore in February.
However, President Trump’s announcement of reciprocal tariffs has thrown global markets into turmoil and triggered massive sell-offs across markets.
Trump’s tariff announcement triggers global market sell-offs
Market impact
Trump’s announcement of reciprocal tariffs on several countries has sparked fears of a potential trade war. This has resulted in massive sell-offs across markets worldwide.
The US stock market alone lost about $5.4 trillion in market capitalization within two days of the tariff announcement.