Market turned red due to US tariff, FPI withdrew 10,355 crores from equities

US President Donald Trump announced a retaliatory reproducible tariff on many countries around the world on April 2, after which there has been an atmosphere of global tension. The effect of Trump's tariff is being seen on the Indian market. FPI has withdrawn Rs 10,355 crore from the Indian stock market in the last four trading sessions.

Effect of Trump's tariff is being seen on the Indian market

According to the data of the depository, FPI had invested Rs 30,927 crore in the Indian market in six trading sessions from March 21 to March 28. Due to this flow, their total withdrawal in the month of March has come down to Rs 3,973 crore. Earlier in February, foreign portfolio investors had withdrawn Rs 34,574 crore from Indian stocks, while their withdrawal in January was Rs 78,027 crore.

Trump announced a retaliatory reproducible tariff on many countries

Manoj Purohit, partner and leader, BDO India, said that in the coming days, market participants will keep an eye on the long-term impact of US tariffs and the monetary review meeting of the Reserve Bank of India (RBI) this week. The market is expecting that the central bank will cut the repo rate.

These developments will play an important role in shaping investment strategies in the coming days.

FPI sells

According to the data, FPIs have withdrawn a net Rs 10,355 crore from Indian stocks in the last four trading sessions (April 1 to April 4). With this, the total withdrawal of FPIs so far in 2025 has reached Rs 1.27 lakh crore. VK Vijayakumar, chief investment strategist, Geojit Investments, said that US tariffs are much more than expected, which will affect their business.

Along with this, he said that retaliatory tariffs in India and other countries will increase inflation in America.

America also suffered losses

While the pressure of American tariffs is being seen on the Indian stock market, on the other hand, selling has also been seen in the American markets. In just two trading sessions, S&P 500 and Nasdaq have fallen by more than 10 percent. Vijaykumar said that the tariff war effect is being seen on markets all over the world.

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However, in the meantime, the dollar index falling to 102 is a positive sign for emerging economies like India.

Summary

The pressure of the reproducible tariff imposed by the US on India is being seen on the domestic stock market. The market saw a decline on the last trading day. FPI has done a massive sell-off in the last 4 trading days.

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