Foreign portfolio investors (FPIs) in India were marginal net sellers during the week ending April 24, 2026, marking another chapter in an 18-month trend where investors have withdrawn more than $45 billion from the country since September 2024. According to data from the National Securities Depository Ltd (NSDL), this week showed a notable shift from early buying to persistent selling in the latter half.
“Since September 2024, FIIs have withdrawn over $45 billion from India. Consequently, India’s weight in the MSCI index has decreased from a peak of around 20 percent to nearly 12 percent today,” stated N. ArunaGiri, CEO of TrustLine Holdings. He noted that this divergence has surprised many seasoned observers, especially following the ceasefire announcement in West Asia in early April, which had raised hopes for a reversal in inflows.
On April 24, FPIs experienced a cumulative net outflow of ₹344.28 crore across all asset classes, including equity, debt, hybrid, mutual funds, and alternative investment funds (AIFs). The week initially opened positively, with a net inflow of ₹18.14 crore recorded on Monday, April 21, followed by a stronger recovery of ₹1,164.74 crore on Wednesday. However, Thursday’s net inflow of just ₹330.29 crore was overshadowed by Friday’s outflow, indicating deteriorating sentiment throughout the week.
Equity markets faced significant selling pressure. On Friday alone, FPIs registered a net equity outflow of ₹2,469.67 crore, representing the largest single-session sell-off of the week. This followed a Thursday outflow of ₹1,249.90 crore, after a modest inflow of ₹595.21 crore on Wednesday. Monday and Tuesday saw lesser equity inflows of ₹2,068.84 crore and ₹507.38 crore, respectively, highlighting the late-week reversal in trend.
“The flow pattern this week indicates a shift in sentiment, with FIIs remaining net buyers in the early sessions before turning sellers later on,” said Himanshu Srivastava, Principal Manager Research at Morningstar Investment Research India. He attributed the change to global macroeconomic factors, particularly inflation expectations, interest rate outlooks, and commodity price fluctuations.
Contrastingly, the debt markets showed a different pattern of behavior. The Debt-Fully Accessible Route (FAR) segment stood out, posting net inflows consistently across all five sessions: ₹1,168.62 crore on Monday, ₹30.21 crore on Tuesday, ₹615.03 crore on Wednesday, ₹1,906.73 crore on Thursday, and a significant ₹2,422.50 crore on Friday. These inflows notably offset equity outflows, especially on Friday when they mitigated the total outflow from widening further.
The Debt-General Limit and Debt-VRR segments, however, largely remained negative throughout the week. On Friday, Debt-General recorded a net outflow of ₹83.09 crore, while Debt-VRR showed an outflow of ₹84.34 crore. Additionally, the hybrid segment reported sustained net selling, culminating in an outflow of ₹147.80 crore on Friday, the largest for that week.
“FIIs were net sellers in all five trading sessions, with the volume of selling increasing in the week’s latter half,” observed Pabitro Mukherjee, Associate Vice-President – Research at Bajaj Broking, referencing provisional exchange data. “Geopolitical news continues to influence institutional flows,” he added.
The rupee’s depreciation added further challenges, moving from ₹92.72 per dollar on Monday to ₹94.08 by Friday—a decline of over 1.4 percent during the week. Analysts suggest that this trend may negatively impact dollar-adjusted returns for foreign investors. “Currency dynamics likely played a role, with the rupee facing intermittent pressure affecting dollar-adjusted returns,” noted Srivastava.
In dollar terms, the week’s cumulative net investment figures revealed sharp fluctuations: Monday’s total net was $1.95 million, followed by $42.62 million on Tuesday, and $124.66 million on Wednesday, with Thursday at $35.21 million and Friday experiencing a drop of negative $36.59 million, underscoring a rapid sentiment shift.
ArunaGiri highlighted deeper structural issues affecting FPI willingness to invest. “FIIs are primarily large-cap, top-down investors. Their participation generally requires clear sectoral leadership, which is currently lacking,” he explained. He pointed out that a downturn in the IT sector and muted performance in private banks—historically key sectors for FII investments—have diminished India’s attractiveness in the global landscape. “Until there is alignment on key factors such as a clear earnings acceleration cycle and supportive currency trends, expecting a significant return of FII flows may be overly optimistic,” he added.
Published on April 25, 2026.
