Foreign portfolio investors (FPIs) turned net sellers for the week ended April 24, 2026, recording a cumulative net outflow of ₹344.28 crore on Friday, according to data from the National Securities Depository Ltd (NSDL). The week's flow pattern showed a sharp reversal from early buying to sustained selling in the latter half, with Friday's outflow dragging the week's overall tone into negative territory. The week had opened positively with Monday recording a net inflow of ₹18.14 crore, followed by a sharper recovery of ₹1,164.74 crore on Wednesday, but Thursday's net inflow of just ₹330.29 crore gave way to Friday's outflow.
Equity markets bore the brunt of the selling pressure, with FPIs recording a net equity outflow of ₹2,469.67 crore on Friday — the steepest single-session equity sell-off of the week. This followed Thursday's equity net outflow of ₹1,249.90 crore, which itself came after a positive equity print of ₹595.21 crore on Wednesday. Monday and Tuesday saw modest equity inflows of ₹2,068.84 crore and ₹507.38 crore respectively, making the late-week reversal particularly stark. As reported by The Hindu BusinessLine, the flow pattern reflects a shift in sentiment with FPIs remaining net buyers during the first three trading sessions before reversing course in the latter half.
Debt markets provided a meaningful offset to equity outflows, with the Debt-FAR segment registering net inflows across all five sessions. The segment recorded ₹1,168.62 crore on Monday, ₹30.21 crore on Tuesday, ₹615.03 crore on Wednesday, ₹1,906.73 crore on Thursday, and a substantial ₹2,422.50 crore on Friday. The consistent FAR inflows prevented the total outflow figure from widening further on Friday. However, the Debt-General Limit and Debt-VRR segments remained in negative territory for most of the week, with Friday's outflows at ₹83.09 crore and ₹84.34 crore respectively, while the hybrid segment saw persistent net selling with Friday's outflow at ₹147.80 crore.
The latest selling represents part of an 18-month exodus that has seen FPIs pull out more than $45 billion from India since September 2024, according to N. ArunaGiri, CEO of TrustLine Holdings. As reported by The Hindu BusinessLine, India's weight in the MSCI index has declined from a peak of around 20 per cent to nearly 12 per cent today. The rupee's slide added complexity, with the conversion rate moving from ₹92.72 per dollar on Monday to ₹94.08 on Friday, reflecting a depreciation of over 1.4 per cent through the week, with the conversion rate moving from ₹92.72 per dollar on Monday to ₹94.08 on Friday.
ArunaGiri pointed to deeper structural reasons for FPI reluctance, noting that FPIs are predominantly large-cap, top-down investors requiring clear sectoral leadership. He highlighted that the IT sector's derating and muted performance in private banks — traditionally core FII allocations — have reduced India's relative attractiveness. Himanshu Srivastava from Morningstar Investment Research India noted that global macro factors, particularly inflation expectations, interest rate outlook, and commodity price movements continue to dominate foreign investor behavior. Analysts suggest that until clear earnings acceleration cycles and supportive currency trends align, expecting a sharp return of FII flows may be optimistic.
