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Foreign Investors Pull Out Rs 60,847 Crore from Indian Equities in April

Foreign portfolio investors sold Rs 60,847 crore worth of Indian equities in April, marking the second consecutive month of heavy outflows. The total FPI outflows from Indian equities in 2026 have reached Rs 1,91,969 crore, reflecting sustained pressure on domestic markets. A major factor behind the outflows is the increasing attraction of AI-driven markets in South Korea and Taiwan, which are drawing significant foreign capital. Experts warn that the trend may continue as long as the AI investment theme remains strong.

Key Points: Foreign Investors Sell Rs 60,847 Crore in Indian Equities

  • Foreign investors sold Rs 60,847 crore in Indian equities in April
  • Total FPI outflows in 2026 reach Rs 1,91,969 crore
  • AI-driven markets in South Korea and Taiwan attract capital
  • Outflows may continue as long as AI trade remains strong
2 min read

Foreign investors sold Rs 60,847 cr worth equities in April due to outflow shifts to AI-driven markets

Foreign investors sold Rs 60,847 crore in Indian equities in April, driven by shifts to AI-driven markets in South Korea and Taiwan.

"An important factor driving capital flows is the AI trade, particularly in South Korea and Taiwan. - V K Vijayakumar"

New Delhi, May 3

Foreign portfolio investors 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.

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.

"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.

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.

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.

- ANI

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Reader Comments

S
Siddhartha F
AI-driven markets like Taiwan and Korea are attracting capital because they are at the forefront of technology. India needs to focus on building its own semiconductor and AI ecosystems if we want to compete. Unfortunately, we are still behind in infrastructure and R&D spending. High time the government accelerates these sectors! 🇮🇳
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Priya S
While I understand the global shift, I can't help but feel this is a temporary trend. India's long-term story is strong, with a large domestic market and digital growth. The energy crisis and currency depreciation are challenges, but not permanent. Let's stay calm and hold our positions.
V
Vishal D
Achha, so Samsung and TSMC are getting all the love while we are getting ignored? Our own semiconductor mission hasn't even started properly. I think the government should rethink its policy - reduce GST on tech manufacturing and give more incentives for AI startups. Otherwise we'll keep losing out.
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Riya H
Honestly, I think this is a healthy correction. Markets were overvalued anyway. FIIs chasing AI bubbles is their business. We should focus on solving our core issues - energy prices are killing manufacturing, and if we don't fix currency depreciation, no one will invest. 😔
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Kiran H
This is exactly why we need to strengthen our domestic institutional investors like LIC and mutual funds. Let the FPIs go, but we must ensure that our own money stays in the market. Also, energy crisis is real - we need to push renewable energy faster to reduce dependence.

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