FIIs offload Rs 1.14 lakh crore worth of Indian equities in March

Foreign institutional investors sold domestic equities worth Rs 1,13,810 crore in March 2026, continuing their selling amid the Iran-Israel war. Year-to-date outflows for the year have reached Rs 1,27,157 crore.

Foreign institutional investors (FIIs) continued their divestment from Indian equities in March 2026, offloading shares valued at Rs 1,13,810 crore, according to data reported by The Economic Times. This figure, roughly Rs 1.14 lakh crore, marks an extension of selling trends observed earlier in the year, influenced by the ongoing Iran-Israel war. As of late March, cumulative outflows for 2026 stood at Rs 1,27,157 crore. The sales reflect broader pressures on Indian markets from geopolitical tensions, though domestic institutional investors have partially offset the impact in recent sessions. Market participants noted that FIIs, also referred to as FPIs in some contexts, have been net sellers amid global uncertainties. No specific sectors or stocks were highlighted in the immediate data release, but the trend underscores volatility in emerging markets like India.

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Following initial market shocks from West Asia conflict, Indian equities saw major foreign investor outflows and remain volatile amid rising oil prices. FPIs withdrew $751.4 million on March 2—the largest daily pullout in four months—with markets resuming post-Holi holiday on March 4 under continued pressure.

Foreign institutional investors (FIIs) poured Rs 22,615 crore into Indian stocks during February, showing strong buying interest. However, escalating geopolitical tensions between Iran and Israel have raised concerns about the sustainability of this trend. Experts suggest that FIIs might pause new investments to monitor the situation.

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The Indian rupee depreciated by 9.88% against the US dollar in FY26, marking it as Asia's weakest currency amid record foreign investor outflows and surging oil prices. The Reserve Bank of India intervened to stabilize the currency, while domestic funds provided a record cushion against the exits. Equity indices like Nifty and Sensex recorded their worst fiscal performance since FY20.

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Global cryptocurrency exchange-traded funds (ETFs) recorded net outflows of US$2.95 billion in November amid market volatility, according to ETF data specialist ETFGI.

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