Foreign investors sold heavily

Foreign portfolio investors pulled ₹48,213 crore out of Indian equities in the first 10 days of April, extending a sharp sell-off into the new financial year. (livemint.com) The April withdrawals came after a record ₹1.17 lakh crore outflow in March, which followed a February inflow of ₹22,615 crore, the highest monthly buying in 17 months. With April’s selling, total foreign portfolio investor outflows in 2026 have climbed to about ₹1.8 lakh crore, according to National Securities Depository Ltd. data cited by market reports. (moneycontrol.com) The selling has been concentrated in the cash market, where foreign funds buy and sell listed shares directly rather than using derivatives. Mint, citing Press Trust of India, said the retreat was tied to rising geopolitical tensions and global macroeconomic uncertainty. (livemint.com) Foreign portfolio investors are overseas funds registered to hold Indian securities, and their flows can move benchmark indexes, the rupee, and daily trading sentiment. The Securities and Exchange Board of India says daily foreign portfolio investor investment data is disseminated through the National Securities Depository Ltd. and Central Depository Services Ltd. websites. (sebi.gov.in) The pressure on Indian shares has come as oil prices and regional tensions have become a bigger market driver. Morningstar’s Himanshu Srivastava told Moneycontrol that tensions in West Asia had pushed up crude prices and revived inflation worries, while Geojit’s V K Vijayakumar said rupee weakness had kept foreign investors in “sell mode.” (moneycontrol.com) The outflows have continued even as regulators and exchanges try to deepen India’s market plumbing, especially in commodities. On April 13, the National Stock Exchange began trading Platts-linked Dated Brent crude oil futures after regulatory approval, offering a domestic hedge tied to global oil prices. (ndtvprofit.com) That push is broader than one contract. Securities and Exchange Board of India Chairman Tuhin Kanta Pandey said in September 2025 that the regulator was examining a proposal to let foreign portfolio investors trade in non-cash-settled, non-agricultural commodity derivatives, while also considering access for banks, insurers, and pension funds. (thehindubusinessline.com) For now, the flow picture is moving the other way: foreign funds are cutting Indian equity exposure while exchanges add new products and regulators weigh wider participation. The next test is whether calmer oil prices, a steadier rupee, or stronger corporate earnings can slow the selling. (moneycontrol.com)