Foreign portfolio investors (FPIs) withdrew a net sum of Rs 33,927 crore from Indian equities during the first half of April, with technology stocks bearing the brunt of the selloff, marking their worst fortnightly outflows in over a year, The Hindu Business Line reported.

According to data from the National Securities Depository Limited (NSDL), FPIs dumped Rs 13,828 crore worth of technology stocks amid global trade uncertainty and fears over new tariffs. Financial services and capital goods also saw significant outflows of Rs 4,501 crore and Rs 3,019 crore, respectively.

The exodus coincided with a sharp 7.5% decline in the Nifty IT index, in stark contrast to a modest 0.8% gain in the benchmark Nifty 50.

The turbulence comes in the backdrop of escalating global trade tensions, particularly after the US announced reciprocal tariffs. However, a 90-day pause and exemptions for key electronics such as smartphones and computers, announced by US President Donald Trump, have helped temper investor fears and slightly revive risk sentiment.

Despite the tech-driven outflows, certain domestic-facing sectors saw renewed interest. FPIs purchased Rs 2,137 crore worth of telecom shares and Rs 587 crore in FMCG stocks, indicating a shift towards more resilient domestic consumption themes. The power and media sectors also fared comparatively better during the period.

Vinod Nair, Head of Research at Geojit Financial Services, said the supportive macroeconomic environment in India continues to draw long-term investors toward riskier assets.

“At present, the domestic macroeconomic environment remains supportive, encouraging investors to increase their exposure to riskier assets for the long term,” Nair told the newspaper.

 However, market analysts believe the overall direction of FPI strategy remains unclear and will become more evident once current global uncertainties abate.