New Delhi: The Foreign Institutional Investors (FIIs) have continued with their selling spree in the first month of the new financial year 2026-27, i.e. April 2026. Amid the rising geopolitical tensions emanating out of the West Asia conflict and global macroeconomic uncertainties reduced risk appetite, the FIIs sold heavily in the first 10 days of the present month.
The unabated selling of FIIs continued as they offloaded equities worth Rs 48,213 crore (USD 5.14 billion) in the first 10 days of April. In March 2026, FIIs pulled out a record Rs 1.17 lakh crore (about USD 12.7 billion), the worst monthly exodus on record. In February, i.e., FPIs pumped in Rs 22,615 crore in February, marking the highest monthly inflow in 17 months.
Since the starting of January 2026, foreign portfolio investors have sold equities worth around Rs 1.8 lakh crore so far. The NSDL data mentioned that foreign investors offloaded equities worth Rs 48,213 crore from the cash market till April 10.
The FIIs have been in selling mode sue the the global macroeconomic challenges and heightened geopolitical risks.
Why FIIs are relentlessly selling in Indian market
Commenting on the FII selling trend, Himanshu Srivastava, Principal – Manager Research at Morningstar Investment Research India, said foreign investor shave been withdrawing from the Indian market sue to the by risks triggered by escalating tensions in West Asia, which pushed up energy prices and revived concerns about inflation globally.
Another expert, VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the US-Israel and Iran war has led to shortage of fuel supplies across the world. The West Asia conflict’s impact on the Indian economy and continued depreciation of the rupee, has compelled FPIs to sell equities, he added.
Vijayakumar further said FPIs are attracted towards South Korea and Taiwan markets, considering their stronger earnings growth outlook compared to the relatively modest expectations for India in FY27. The US-Iran ceasefire has failed to stop FIIs selling.
When will FIIs come back?
“FPIs used the relief rally as a liquidity window to exit further,” said Vaqarjaved Khan, Senior Fundamental Analyst at Angel One.
Khan said if Strait of Hormuz reopens, Rupee stabilises, and a good Q4 domestic corporate results could attract the FIIs bac to the domestic market.
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