FPI Buying Trend Reversal: Foreign investors have continued their selling in Indian markets. According to NSDL data, FPIs have remained net sellers in April so far. As per data, foreign investors have sold shares worth Rs 48,905 crore till April 11, 2026.
Earlier in March, FPIs sold Indian shares worth Rs 1,22,182 crore. This was, in fact, a record for them when it comes to selling in India in the recent few months.
FPI Buying Trend Reversal: Net Buyers In February
Foreign investors bought Indian shares in February, pumping Rs 22,615 crore into India's stock market. This was the highest amount of shares they bought in the past 17 months, according to NSDL data.
The selling in April has triggered massive volatility in the markets and has come amidst the Middle East crisis, which has been ongoing for six weeks (1.5 months).
In 2026 so far, FPIs have sold Indian shares worth Rs 1,90,046 crore.
FPI Buying Trend Reversal: Experts Speak
Experts said that foreign investors are selling in India due to a combination of factors, like global macroeconomic headwinds and rising geopolitical tensions. Also, valuations have remained a key concern for them and India is now becoming the funding market for other emerging markets like South Korea and Taiwan.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said that although India's market valuation has become fair after the sharp correction, foreign investors are still unlikely to return to India in the near term.
"The sharp correction in the market after the war began has made the valuations fair, but not compelling buys, yet," Vijayakumar said.
FPI Buying Trend Reversal: 3 Reasons
Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, said that FPIs are using every stock market rally in India to exit further. He said that three reasons that could trigger a buying are:
- Reopening of the Strait of Hormuz
- Rupee stabilises
- Surprise from Q4 results season
Experts also said that the energy crisis triggered by Iran could have an adverse impact on India's economy as the country depends on exports to meet its energy needs. This, too, has made foreign investors nervous.
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"The energy crisis triggered by the conflict in West Asia, the potential impact of the crisis on Indian economy and sustained depreciation of the rupee kept the FPIs in sell mode," Vijayakumar said.
Himanshu Srivastava of Morningstar Investment Research India said that FIPI selling was largely driven by risk triggered due to escalating tensions in West Asia.
