FPIs pull out ₹32,121 cr from Indian equities so far in Apr, total outflow for 2025 rises to ₹1.49 lakh cr  

Foreign portfolio investors (FPIs), who had briefly turned net buyers in late March, have resumed sell-off in April, pulling out a net amount of ₹32,121 crore in April 2025, so far. The sell-off was triggered by the turbulence in global stock markets following U.S. President Donald Trump’s reciprocal tariffs and its impact on economic growth. Adding to the woes, persistent concerns over global inflation, tighter monetary policies by major central banks, and trade tensions amid U.S. tariff uncertainties prompted FPIs to reduce exposure to emerging markets like India.

Between March 20-27, foreign investors ramped up buying and infused ₹32,576 crore into the Indian equity market, which brought down the overall outflow for March to ₹3,973 crore, as per NSDL data. Overall, foreign investors have withdrawn a substantial amount of ₹1,48,695 crore so far in the calendar year 2025.

The data showed that FPIs pulled out a net amount of ₹34,574 crore in February and ₹78,027 crore in January 2025.

"The turbulence in global stock markets following President Trump’s reciprocal tariffs has been impacting FPI investments in India too. FPIs who had turned buyers in India during March 20 to 27 have again turned sellers during this turbulence,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

“A clear pattern in FPI strategy will emerge only after the ongoing chaos dies down. In the medium term FIIs are likely to turn buyers in India since both the U.S. and China are heading for an inevitable slowdown as a result of the ongoing trade war. Even in an unfavourable global scenario India can grow by 6% in FY26,” he said.

Vijayakumar further said that robust GDP growth, along with better earnings expected in FY26, can attract FPI investments into India once the dust in the market settles down.

Shrikant Chouhan, Head Equity Research, Kotak Securities, said that FPI flows to date in April’25 were negative for all key emerging markets (except Taiwan). India, Brazil, Indonesia, Malaysia, Philippines, S.Korea, Thailand and Vietnam, witnessed an outflows of $1,877 million, $1,034 mn, $228 mn, $510 mn, $83 mn, $5,996 mn, $218 mn, and $371 mn, respectively. Taiwan witnessed inflows of $446 mn, respectively.

He said that global equity markets witnessed sharp volatility amid uncertainty surrounding global tariff actions. The U.S. tariffs across global markets came into effect in the week, which led to a large sell-off in US bonds and global equities. Subsequently, the U.S. paused the reciprocal tariffs imposed on all countries, except for China, with both countries announcing steadily higher rates on one another.

“Indian equity markets also turned attention to the Q4FY25 earnings season, with investors having muted expectations for the season. FPI flows are expected to remain volatile,” he added.

The Indian benchmark indices BSE Sensex and NSE Nifty ended the week with marginal losses as supportive domestic factors and temporary relief from U.S. tariffs listed sentiments. An unexpected announcement by U.S. President Donald Trump to pause reciprocal tariffs provided significant relief to global equity markets, which were grappling with high uncertainty and recession concerns arising from potential trade wars. The sentiment was also lifted by the Reserve Bank of India's (RBI) decision to ease interest rates.

Driven by strong rally on Friday after the U.S. decision to defer tariffs, the 30-share Sensex settled the week with a loss of 207 points, or 0.27%, at 75,157 level, and the Nifty50 closed 76 points, 0.33%, lower at 22,829 mark. The overall market capitalisation of BSE listed companies stood at ₹401.67 lakh crore at the end of trade on April 11.

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