FPI Selling: Foreign Investors Extend Sell-Off Into April; Primary Market Buying Offers Limited Relief

Foreign portfolio investors (FPIs) remained net sellers at the start of April, carrying forward the record sell-off seen in March, as the ongoing US-Iran war kept investor sentiment weak.

Data from National Securities Depository (NSDL) showed that FPIs have offloaded equities worth Rs 20,389.56 crore in the secondary market so far this month. This was partly offset by Rs 552.33 crore of buying in the primary market, leaving a net outflow of Rs 19,837.23 crore.

NSDL said the April 2, 2026 figures have been compiled from the delivery duty paid (DDP) submissions on that day and account for trades executed on March 30 and April 1. “The data presented for April 2, 2026 is compiled on the basis of reports submitted to depositories by DDPs on April 2, 2026 and constitutes trades conducted by FPIs/FIIs on March 30, 2026 and April 1, 2026,” the depository mentioned on its website.

FPIs marginally raised their exposure to mutual funds by Rs 99 crore, reversing last month’s outflow of Rs 1,381 crore, according to NSDL.

FPI Selling In 2026

Selling by FPIs in 2026 has been brutal in both pace and scale due to the ongoing crisis in West Asia.

In March, FPIs had dumped equities worth Rs 1,17,775 crore, making it their biggest monthly exit to date. Prior to that, they were net buyers in February, increasing exposure by Rs 22,615 crore, and net sellers in January, selling Rs 35,962 crore worth of domestic equities.

Overall, total FPI selling in 2026 has reached Rs 1,61,530.31 crore in the secondary market, partly offset by primary market investments of Rs 10,571.55 crore, taking net outflows to Rs 1,50,959 crore.

To put that in perspective, it has taken just three months to reach levels close to the entire 2025 outflow of Rs 1,66,286 crore.

FPIs were marginal net buyers in 2024 with inflows of Rs 427 crore, following a strong year in 2023 when they invested Rs 1,71,107 crore. This came after a sell-off of Rs 1,21,439 crore in 2022, while 2021 and 2020 saw inflows of Rs 25,752 crore and Rs 1,70,262 crore, respectively.

FPI Sectoral Activity: Financial Services Bleed

Financial services were the hardest hit by the FPI exodus. According to NSDL data till March 15, foreign investors offloaded a massive Rs 31,831 crore from the sector, by far the highest across all segments.

FPIs also trimmed exposure to automobiles and auto components with outflows of Rs 4,807 crore, telecom with Rs 3,856 crore, construction with Rs 2,975 crore, and oil, gas and consumable fuels with Rs 2,932 crore. Healthcare saw selling of Rs 2,436 crore, FMCG Rs 2,403 crore, and realty Rs 2,133 crore.

On the other hand, buying has remained selective and far less aggressive. Capital goods has emerged as the lone bright spot, attracting inflows of Rs 3,897 crore. Metals and mining saw inflows of Rs 876 crore, power Rs 602 crore, consumer services Rs 531 crore, and chemicals Rs 225 crore.