Foreign portfolio investors (FPIs) have continued their aggressive sell-off in Indian equities, withdrawing ₹48,213 crore (approximately $5.14 billion) in the first ten days of April 2026. This trend follows a record outflow of ₹1.17 lakh crore (around $12.7 billion) in March, marking the worst monthly exodus on record. The current withdrawals bring total outflows for the year to ₹1.8 lakh crore. Analysts attribute the sustained selling pressure to rising geopolitical tensions, particularly in West Asia, which have increased crude oil prices and revived inflation concerns globally. Himanshu Srivastava from Morningstar Investment Research India noted that risk aversion among investors is driving the sell-off, while VK Vijayakumar from Geojit Investments highlighted that markets like South Korea and Taiwan are more appealing to FPIs due to stronger earnings growth expectations. Despite a recent ceasefire between the US and Iran, FPIs continued to exit, using the relief rally as an opportunity to liquidate positions. A reversal in this trend is contingent on stabilizing conditions in the Strait of Hormuz, the Indian rupee, and positive surprises from India's Q4 earnings season.