FPI outflows hit Rs 60,847 crore in April, second month of sell-off

FPIs sold Indian equities worth Rs 60,847 crore in April, the second straight month of outflows. Total selling in 2026 reached Rs 1.91 lakh crore as investors shift focus to AI-driven markets like South Korea and Taiwan.

FPIs Continue Heavy Selling in Indian Equities

Foreign portfolio investors (FPIs) continued to pull out money from Indian equity markets in April, selling shares worth Rs 60,847 crore, marking the second consecutive month of heavy outflows, according to data from National Securities Depository Limited.

In March, FPIs had sold equities worth Rs 1,17,775 crore, which was the highest monthly outflow recorded in 2026 so far. With this, the total FPI outflows from Indian equities in 2026 have reached Rs 1,91,969 crore, reflecting sustained pressure on domestic markets amid global shifts in capital allocation.

Expert Analysis: Why FPIs Are Selling

Commenting on the trend, V K Vijayakumar, Chief Investment Strategist, Geojit Investments, said that a major factor behind the outflows is the increasing attraction of other Asian markets, particularly those benefiting from the ongoing artificial intelligence (AI) investment cycle. He highlighted that the AI-driven investment theme is playing a key role in attracting foreign capital to these markets.

Capital Shifts to AI-focused Asian Markets

"An important factor driving capital flows is the AI trade, particularly in South Korea and Taiwan," he said. He added that countries such as Japan, South Korea and Taiwan are witnessing significant inflows, while India and some other emerging markets are facing outflows due to challenges such as the ongoing energy crisis and currency depreciation.

"A significant trend in FPI flows this year is that Japan, South Korea and Taiwan are attracting significant inflows while India and some other emerging markets, which are facing headwinds from the energy crisis and currency depreciation, are facing outflows," Vijayakumar noted.

Specific Companies Attracting Lion's Share

According to him, a few large companies are drawing a major share of global investments. "Two companies in South Korea - Samsung and SK Hynix - and one in Taiwan - TSMC - are attracting the lion's share of these inflows. The excellent results being posted by these companies are providing the fundamental support to the FPI flows into these markets," he added.

Outlook: Outflow Trend Likely to Persist

Vijayakumar further said that as long as the AI investment theme remains strong, the trend of outflows from India may continue. "So long as the AI trade continues, the trend of FPI outflows from India is likely to continue," he said, while also cautioning that there are concerns about overvaluation in AI-related stocks.

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)