NEW DELHI: Foreign Portfolio Investors (FPIs) have pulled out Rs 31,575 crore from Indian equity markets so far in April, spooked by mounting global uncertainty stemming from sweeping tariffs imposed by the United States on several countries, including India.
This sharp outflow follows a net investment of Rs 30,927 crore in just six trading sessions between March 21 and March 28, which had briefly lifted sentiment and reduced March’s total net outflow to Rs 3,973 crore, according to data from the depositories.
By comparison, FPI outflows were steeper in the earlier months—Rs 34,574 crore in February and a massive Rs 78,027 crore in January. While April’s numbers reflect continued volatility, the pace of selling has moderated somewhat, indicating an evolving sentiment among global investors.
PTI noted that between April 1 and April 11 alone, FPIs withdrew Rs 31,575 crore from equities, taking the total outflow so far in 2025 to Rs 1.48 lakh crore.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, told PTI, “The turbulence in global stock markets following President Trump’s reciprocal tariffs has been impacting FPI investments in India too. A clear pattern in FPI strategy will emerge only after the ongoing chaos dies down.”
He added that in the medium term, FPIs are likely to return to Indian markets. “Both the US and China are heading for an inevitable slowdown due to the trade war. Even in an unfavourable global scenario, India can grow at 6 per cent in FY26. This, along with better earnings growth expected, can attract FPI investments once the dust settles.”
Vinit Bolinjkar, Head of Research at Ventura Securities, told PTI that the current sell-off is largely driven by macroeconomic and geopolitical risks triggered by the US government’s tariff decisions. However, he added, “India’s strong macro fundamentals remain intact. Robust domestic demand and ongoing trade realignment continue to position India favourably for the long term.”
Apart from equities, FPIs also pulled out Rs 4,077 crore from the debt general limit and Rs 6,633 crore from the debt voluntary retention route, PTI said.
