FPIs continue to exit Indian markets, sold Rs 60,847 cr worth equities in April

Foreign investors continued their selling spree from Indian equities successful April, pulling retired Rs 60,847 crore from the market. This comes aft a monolithic sell-off successful March, erstwhile overseas investors had already offloaded shares worthy Rs 1,17,775 crore, according to National Securities Depository Limited data. The back-to-back withdrawals person pushed cumulative overseas portfolio capitalist (FPI) outflows from Indian equities to Rs 1,91,969 crore successful 2026 truthful far, signalling sustained weakness successful overseas capitalist sentiment towards home markets. Market experts said the inclination reflects a broader displacement successful planetary superior towards Asian economies seen arsenic stronger beneficiaries of the ongoing artificial intelligence-led concern boom. V K Vijayakumar, Chief Investment Strategist astatine Geojit Investments, said capitalist appetite is progressively being shaped by the AI trade, peculiarly successful markets with ample semiconductor and exertion players. "An important origin driving superior flows is the AI trade, peculiarly successful South Korea and Taiwan," helium said. He said countries specified arsenic Japan, South Korea and Taiwan are drafting sizeable overseas inflows, portion India and respective different emerging markets are seeing superior determination retired arsenic they contend with pressures including the vigor situation and weaker currencies.

"A important inclination successful FPI flows this twelvemonth is that Japan, South Korea and Taiwan are attracting important inflows portion India and immoderate different emerging markets, which are facing headwinds from the vigor situation and currency depreciation, are facing outflows," Vijayakumar noted. According to him, overseas investments are being concentrated successful a tiny radical of companies that are delivering beardown returns and are intimately tied to the AI maturation story. "Two companies successful South Korea - Samsung and SK Hynix - and 1 successful Taiwan - TSMC - are attracting the lion's stock of these inflows. The fantabulous results being posted by these companies are providing the cardinal enactment to the FPI flows into these markets," helium added. Vijayakumar said India could proceed to look FPI outflows arsenic agelong arsenic the planetary AI concern rhythm remains the ascendant marketplace driver. "So agelong arsenic the AI commercialized continues, the inclination of FPI outflows from India is apt to continue," helium said, portion besides cautioning that determination are concerns astir overvaluation successful AI-related stocks.