FIIs sell Indian equities worth Rs 48,213 crore in April, so far; FY26 sell-off balloons to Rs 1.79 lakh crore

Synopsis

Foreign investors continued their significant sell-off in Indian equities, offloading Rs 48,213 crore in April alone. Despite this trend, domestic markets ended Friday with strong gains, buoyed by buying from local institutional investors. Market direction hinges on upcoming US-Iran peace talks, which could impact crude prices and investor sentiment.

Foreign institutional investors (FIIs) offloaded domestic equities worth Rs 48,213 crore in April so far, extending their selling trend in the Indian markets. They have sold shares worth Rs 1,79,335 crore on a year-to-date basis.

On Friday, FIIs bought domestic shares at Rs 672.09 crore while domestic institutional investors (DIIs) were net buyers at Rs 410.05 crore, helping markets end the day with strong gains after a Thursday pause.

The significant action on the last trading day of the week was dominated by banks, auto and consumer stocks. Nifty surged 275.50 points or 1.16% to finish at 24,050.60. Meanwhile, Sensex rose 918.60 points or 1.20% to settle at 77,550.25.

Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said the outcome of the truce talks between Iran and the US will determine the course of markets, which have been majorly dragged by FPI selling. "It appears that FPIs are determined to sell in India and move money to other markets like South Korea and Taiwan, where the earnings growth prospects are much superior in 2026".

"The market will wait to see the outcome of the peace talks between US and Iran scheduled for Saturday. The outcome of the peace talks will determine the trend in crude prices, which, in turn, will dictate market trends. If the talks lead to de-escalation in the conflict and drive crude prices down, the markets, particularly markets like India which are energy import-dependent, will bounce back. The reverse will happen if the peace talks fail and crude spikes further.

He however sees this as a short-term view by the foreign investors as he noted many stocks continue to hit 52-week highs or even all-time highs, even in this challenging market environment.

"Investors can look at these stocks and analyse the reasons behind the resilience of such stocks. Fundamentally sound growth stocks will do well even during weak market conditions," Dr. Vijayakumar said.

FIIs in 2026

War-induced sell-off in March made it the worst month this year, witnessing an exodus worth Rs 1,17,775 crore. Foreign investors turned net buyers in February, buying shares worth Rs 22,615 crore in the domestic markets so far. In January, they sold Rs 35,962 crore worth of shares.

In 2025, the FIIs buying trends remained patchy, but the overall trend was bearish. They took Rs 1,66,286 crore from Indian markets as trade deal delay and premium valuations weighed on the sentiments.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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