Foreign investors continued exiting Indian equities in April, offloading Rs 48,213 crore ($5.14 billion) from the cash market in just the first ten days of the month, as global uncertainty and geopolitical tensions continued to weigh on sentiment. This sustained selling comes after a historic pullback in March, when foreign portfolio investors (FPIs) exited with Rs 1.17 lakh crore (around $12.7 billion), marking the largest monthly outflow on record. The trend reflects a sharp shift from February, which had seen inflows of Rs 22,615 crore, the strongest in 17 months. With April’s activity, cumulative FPI outflows for 2026 have now reached Rs 1.8 lakh crore, according to NSDL data. The persistent exodus has been attributed to a combination of global macroeconomic pressures and rising geopolitical risks. Analysts point to growing caution among investors as tensions in West Asia escalate, influencing broader market behaviour. Himanshu Srivastava, Principal, Manager Research at Morningstar Investment Research India, said the selling was largely a result of heightened risk aversion. He noted that the situation in West Asia has driven crude oil prices higher, reviving global inflation concerns. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, also flagged the energy crisis linked to the West Asia conflict as a key factor, adding that its potential impact on the Indian economy, along with the ongoing depreciation of the rupee, has kept foreign investors on the sidelines. He added that other Asian markets, including South Korea and Taiwan, are currently seen as more favourable by FPIs due to their relatively stronger earnings growth outlook, compared to India’s more modest projections for FY27. Despite the announcement of a US-Iran ceasefire, there has been little change in investor behaviour. “FPIs used the relief rally as a liquidity window to exit further,” said Vaqarjaved Khan, Senior Fundamental Analyst at Angel One. Khan said any reversal in flows would depend on key developments, including the credible reopening of the Strait of Hormuz, stability in the rupee, and a positive surprise from India’s Q4 earnings season. “Flows can reverse quickly, but only if macro conditions begin to support the shift,” he added.