Foreign Institutional Investors (FIIs) sold a record ₹11,163 crore in Indian equities on April 1 2026 triggering broad-based selling pressure that pushed the Sensex down 0.36% to 73,839.75 as of April 7 2026. This FII outflow combined with a weakening rupee at 92.67 against the US dollar due to RBI interventions and high oil import bills amplified market volatility by over in early April. The Reserve Bank of India's Monetary Policy Committee maintained the repo rate at 5.25% during its April 6-8 meeting signaling no immediate easing to counteract these pressures.

CURRENT STATE

The Indian stock market is experiencing heightened volatility driven primarily by record FII outflows of ₹11,163 crore on April 1 2026 which have pressured equity prices despite a rally on April 6 where the Sensex surged over 780 points. Elevated crude oil prices above $100-115 per barrel amid West Asia geopolitical tensions have increased inflation concerns further unsettling investors. The rupee's resilience at 92.67 against the dollar is strained by currency pressures from oil imports and FII selling while the RBI's decision to hold the repo rate steady at 5.25% maintains a cautious monetary stance. Banking and IT sectors show relative strength supported by easing geopolitical concerns and positive global cues.

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