FPIs Dump ₹60,847 Crore, Rupee Hits ₹85

Foreign investors pulled ₹60,847 crore out of Indian markets in April, making it one of the sharpest monthly outflows in recent memory. The selling pressure pushed the rupee to a low of ₹85 against the dollar before it closed just short of that level on Thursday. Foreign portfolio investors, or FPIs, buy and sell Indian stocks and bonds regularly. When they sell in large volumes and convert rupees back into dollars, demand for dollars rises and the rupee weakens. April's outflow was large enough to move the currency meaningfully. A weaker rupee raises the cost of imports, particularly oil, which India buys in dollars. It also increases the repayment burden on companies that have borrowed in foreign currency. Both effects can feed into broader inflation and margin pressure across sectors. The scale of the exit and the rupee's move toward ₹85 are the key numbers to watch. Whether outflows continue into May will determine if the currency finds a floor or weakens further.