Foreign investors upset due to the chaos born from Trump’s tariff! Shares worth crores of rupees were removed from Indian market

FPI: Foreign portfolio investors (FPIs) have withdrawn Rs 31,575 crore from the Indian stock market in April amid concerns about the US imposing tariffs on several countries including India. Earlier, in six trading sessions from March 21 to March 28, FPI invested Rs 30,927 crore in shares.

According to deployment data, the total net FPI outflow in March increased to Rs 3,973 crore due to these investments. This is a significant improvement in the situation compared to previous months.

January and February data

In February, foreign portfolio investors withdraw Rs 34,574 crore from shares, while in January the amount reached Rs 78,027 crore.

This change in investors’ spirit is a reflection of instability and changing conditions in global financial markets. According to the data, between April 1 and April 11, the FPI has withdrawn Rs 31,575 crore from Indian shares. With this, the total FPI withdrawal has reached Rs 1.48 lakh crore in 2025 so far.

What do analysts think?

VK Vijaykumar, the main investment strategist at Geojit Investments, said, “After the counter-tariff of President Donald Trump, the upheaval in the global stock markets is also affecting the FPI investment in India.” He believes that the FPI strategy will be clear only after the current turmoil has stopped. He said, “In the moderate period, since both the US and China are moving towards unavoidable recession in the current trade war, FPIs can attract buyers in India.”

Even in adverse global conditions, India can register a six percent increase in FY 2025-26. FPI investment in India will increase after the market is upheaval. Apart from equity, FPI has withdrawn Rs 4,077 crore from loan or bonds under the general limit and Rs 6,633 crore through discretionary holding route.

According to depository data, FPI invested Rs 30,927 crore in the Indian market in six trading sessions between March 21 and March 28. Due to this flow, their total withdrawal amount in March has reached Rs 3,973 crore. In early February, foreign portfolio investors withdraw Rs 34,574 crore from Indian shares, while their amount was Rs 78,027 crore in January.

Vijaykumar said, “A complete trade war can have far -reaching consequences, affecting global trade and economic growth.” However, a decline in the dollar index up to 102 is considered favorable for capital flow in emerging economies like India.