Foreign portfolio investors (FPIs) in the week ended April 24, 2026 were marginal net sellers in Indian markets — the latest chapter in what has been an 18-month exodus that has seen FPIs pull out more than $45 billion from India since September 2024. The week’s flow pattern shows a sharp reversal from early buying to sustained selling in the latter half, according to data from the National Securities Depository Ltd (NSDL).

“Since September 2024, FIIs have pulled out more than $45 billion from India. As a result, India’s weight in the MSCI index has declined from a peak of around 20 per cent to nearly 12 per cent today,” said N. ArunaGiri, CEO of TrustLine Holdings, noting that the divergence has surprised even seasoned observers — particularly after the West Asia ceasefire announcement in early April, which had raised hopes of a flow reversal.

On a cumulative basis across all asset classes — equity, debt, hybrid, mutual funds, and AIFs — FPIs recorded a net outflow of ₹344.28 crore on Friday, April 24, dragging the week’s overall tone into negative territory. The week had opened on a positive note, with Monday, April 21, recording a net inflow of ₹18.14 crore, followed by a sharper recovery of ₹1,164.74 crore on Wednesday, April 22. However, Thursday’s net inflow of just ₹330.29 crore gave way to Friday’s outflow, confirming a deterioration in sentiment through the week.

Equity bore the brunt of the selling. On Friday, FPIs recorded a net equity outflow of ₹2,469.67 crore — the steepest single-session equity sell-off of the week. This came after Thursday’s equity net outflow of ₹1,249.90 crore, which itself followed a positive equity print of ₹595.21 crore on Wednesday. Monday and Tuesday saw modest equity inflows of ₹2,068.84 crore and ₹507.38 crore, respectively, making the late-week reversal all the more stark.

“The flow pattern through the week reflects a shift in sentiment, with FIIs remaining net buyers during the first three trading sessions, before reversing course and turning sellers in the latter half,” said Himanshu Srivastava, Principal Manager Research at Morningstar Investment Research India. “...global macro factors, particularly inflation expectations, the interest rate outlook, and commodity price movements continue to dominate foreign investor behaviour,” he added.

Debt markets, however, told a different story. The Debt-FAR (Fully Accessible Route) segment was the standout performer, registering net inflows 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 substantial ₹2,422.50 crore on Friday. The consistent FAR inflows provided a meaningful offset to equity outflows, particularly on Friday when they prevented the total outflow figure from widening further.

The Debt-General Limit and Debt-VRR segments, by contrast, remained in negative territory for most of the week. On Friday, Debt-General posted a net outflow of ₹83.09 crore, while Debt-VRR recorded an outflow of ₹84.34 crore. The hybrid segment also saw persistent net selling, with Friday’s outflow at ₹147.80 crore — the largest hybrid outflow of the week.

“FIIs remained net sellers in all the five trading sessions last week, with the quantum of selling increasing in the second half of the week,” noted Pabitro Mukherjee, Associate Vice-President – Research at Bajaj Broking, referencing provisional exchange data. “...geopolitical news continues to dominate institutional flows,” he said.

The rupee’s slide added another layer of complexity. The conversion rate moved from ₹92.72 per dollar on Monday to ₹94.08 on Friday, reflecting a depreciation of over 1.4 per cent through the week — a dynamic that analysts say weighs on dollar-adjusted returns for foreign investors. “Currency dynamics may also have played a role, with the rupee facing intermittent pressure, thereby impacting dollar-adjusted returns,” Srivastava said.

Looking at the week’s cumulative net investment figures in dollar terms: Monday’s total net stood at just $1.95 million, Tuesday at $42.62 million, Wednesday at $124.66 million, Thursday at $35.21 million, and Friday at negative $36.59 million — underscoring how quickly sentiment shifted.

ArunaGiri pointed to deeper structural reasons for FPI reluctance. “FIIs are predominantly large-cap, top-down investors. Their participation typically requires clear sectoral leadership. Currently, that visibility is limited,” he said, adding that the IT sector’s derating and muted performance in private banks — traditionally a core FII allocation — have reduced India’s relative attractiveness in a global framework. “...until these factors align — a clear earnings acceleration cycle and supportive currency trends — expecting a sharp return of FII flows may be optimistic,” he said.

Published on April 25, 2026