New Delhi, April 13(HS): Due to the upheaval in the global market regarding the US reciprocal tariffs, foreign portfolio investors (FPIs) have been in a continuous selling position in the domestic stock market this month. In April so far, FPIs have withdrawn ₹31,575 crore from the Indian market. This withdrawal is significant as FPIs had previously invested ₹30,927 crore in the domestic stock market during six trading sessions from March 21 to March 28. According to depository data, combining total purchases and sales made in the year 2025, FPIs have so far conducted net selling of ₹1.48 lakh crore.
In this regard, Prashant Dhami, Vice President of Dhami Securities, states that since the announcement of reciprocal tariffs by US President Donald Trump, there has been a chaotic environment in the global market. Particularly, the ongoing tariff tussle between the US and China has affected stock markets worldwide. India has not been able to escape this turmoil. This is why, during last week’s trading, both Sensex and Nifty faced significant declines, although in two trading days, these indices also showed strong gains.
Prashant Dhami mentions that the aggressive selling by foreign portfolio investors during this market volatility has also played a crucial role. He notes that due to the global upheaval, it is difficult to comment on FPIs’ strategies in the domestic stock market. Only after the market turbulence settles can the strategies of foreign portfolio investors be clarified.
Similarly, Ravi Chander Khurana, CEO of Khurana Securities and Financial Services, states that based on current market signals, it can be said that FPIs might also take on a buying role in the medium term. This is because the behavior of both the US and China regarding tariffs has raised concerns about sluggishness in both countries. To counter this sluggishness, both countries might look towards Indian products, especially as the US might substitute Chinese goods with Indian ones. In these circumstances, despite the shocks from the tariff war, both India and its market could achieve new developmental goals. If this happens, foreign portfolio investors might shift their focus from the US and China to the Indian stock market.
Hindusthan Samachar / Jun Sarkar
