This reversal in trend comes around a year after a bull run on the Indian stock market and continuous inflow of foreign investments into the equities. So far in 2021, the net FPI investments into equities stand at Rs 47,068 cr, with net inflows of Rs 19,473 cr, Rs 25,787 cr and Rs 10,482 cr in January, February and March, respectively.

Further, according to analysts, weakness in the Indian rupee also led to the fund outflow. Currently, the rupee is around 75 per dollar. The recent surge in COVID cases and loss of lives have raised concerns and also have given rise to possibilities of restrictions and lockdowns, which may hurt the economy, analysts said.