Foreign portfolio investors (FPIs) have continued their sell-off in Indian equities, withdrawing ₹48,213 crore (around $5.14 billion) in the first ten days of April 2023. This follows a record outflow of ₹1.17 lakh crore (approximately $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, which have increased crude oil prices and revived global inflation concerns. Himanshu Srivastava from Morningstar Investment Research India noted that this risk aversion is significantly impacting foreign investments. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, highlighted that the ongoing energy crisis and the depreciation of the Indian rupee have kept FPIs in a selling mode. He pointed out that markets like South Korea and Taiwan are currently more appealing to FPIs due to their stronger earnings growth outlook compared to India's modest expectations for the fiscal year 2027. Analysts suggest that a reversal in investment flows will depend on key factors such as the reopening of the Strait of Hormuz, stabilization of the rupee, and positive surprises from India's fourth-quarter earnings season.