FPIs close April 2026 with net selling of $(6.49) Billion in equities

FPI AUC RECOVERS 8% IN APRIL, BUT SELLING CONTINUES

FPI selling in April 2026 at $(6.49) billion, was almost half of the March net equity selling of $(12.58) billion. Out of the 23 sectors, 8 sectors saw net buying, while 15 sectors saw net selling in April 2026. Net selling was again dominated by BFSI, accounting for 50% of the FPI selling in April, at $(3.28) billion. After falling to $660 billion in March 2026, the FPI equity AUC recovered to $713 billion, but still 23% below its September 2024 peak. Overall FPI AUC also recovered in April to $787 billion. FPIs sold $5.15 billion in the first fortnight and a more subdued $1.34 billion in the second fortnight of April 2026.

Data Source: NSDL

PUTTING THE APRIL 2026 FPI SELLING IN PERSPECTIVE

• FPI selling in India is not just about the war. Since the peak of September 2024, FPIs have been net sellers in Indian equities to the tune of $(52.36) billion. This has been more than offset by DII buying, which is why markets have still managed to hold up.

• The war has exacerbated the FPI selling for two reasons. Firstly, the supply chain constraints are posing higher inflation costs on India. Secondly, the rupee has fallen in tandem with crude price spike, and that is impacting FPI sentiments on India.

• Another factor being mentioned is the absence of Indian companies in the AI story, which is pushing FPIs towards more AI-intensive economies like Taiwan, South Korea, and China. While it could be perception, data does point to such a directional shift.

SECTORS DRIVING FPI ACTION IN APRIL 2026

• At $(3.28) billion, FPI selling in BFSI again accounted for 50.5% of overall FPI selling in April 2026. BFSI paid the price of liquidity and vulnerability.

• Customer facing sectors like consumer services and FMCG saw combined net selling of $(1.17) billion as caution and demand impact is expected in coming months.

• Supply chain concerns continued to dominate the selling in oil and auto stocks, amid crude uncertainty. These 2 sectors saw overall FPI selling of $(1.29) billion in April.

• Traditional export drivers (Healthcare and IT); have also come under selling pressure, despite weak rupee, due to access concerns; with net selling of $(1.18) billion.

• While FPIs are betting on gains from Middle East revival, domestic housing demand slowdown resulted in net selling of $(360) million in realty and cement.

• Where was the FPI buying seen in April 2026? It was concentrated in the capex recovery stocks like power and capital goods, which saw net FPI buying of $1.04 billion in April 2026. These sectors are expected to gain from the Middle East revival spending; as well as peak power demand in India, amid El Nino conditions.

With hopes of a truce in Iran, the big question is; whether FPIs will come back to India? That will largely depend on the narrative that India sets for FPI investments.