Foreign portfolio investors (FPIs) have significantly increased their sell-off in Indian equities, withdrawing ₹48,213 crore (approximately $5.14 billion) in just the first ten days of April 2026. This follows a staggering outflow of ₹1.17 lakh crore (about $12.7 billion) in March, marking the worst monthly exodus on record. The sustained selling pressure is attributed to rising geopolitical tensions, particularly in West Asia, and global macroeconomic uncertainties that have dampened risk appetite among investors. Himanshu Srivastava, Principal – Manager Research at Morningstar Investment Research India, emphasized that escalating tensions have pushed crude oil prices higher, reviving inflation concerns worldwide. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, echoed these sentiments, noting that the energy crisis and the depreciation of the Indian rupee have kept FPIs in a selling mode. Despite a recent ceasefire between the US and Iran, the selling momentum has not abated. Analysts suggest that a reversal in FPI flows will depend on the stabilization of the rupee, a credible reopening of the Strait of Hormuz, and positive surprises from India's Q4 earnings season.