Foreign portfolio investors (FPIs) have continued their sell-off in Indian equities, withdrawing ₹48,213 crore (approximately $5.14 billion) in the first 10 days of April 2023. This trend follows a historic outflow of ₹1.17 trillion (about $12.7 billion) in March, marking the worst monthly exodus on record. Market analysts attribute the sustained selling pressure to rising geopolitical tensions, particularly in West Asia, and global macroeconomic uncertainties that have dampened investor risk appetite. Himanshu Srivastava, Principal - Manager Research at Morningstar Investment Research India, highlighted that concerns over inflation due to escalating crude oil prices are influencing FPIs’ decisions. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that markets in South Korea and Taiwan are more appealing to FPIs due to stronger earnings growth expectations compared to India. Even a recent ceasefire between the US and Iran failed to halt the selling momentum, as FPIs utilized the relief rally to further liquidate their positions. Analysts suggest that a reversal in outflows will depend on factors such as the reopening of the Strait of Hormuz, stabilization of the Indian rupee, and positive surprises from India's Q4 earnings season.