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.

संबंधित लेख

Anxious traders at Bombay Stock Exchange watch falling Indian stocks and rising oil prices amid Middle East tensions.
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Indian stocks face ongoing pressure from Middle East tensions

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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 have sold Indian shares worth more than Rs 2 lakh crore so far in 2026, marking their third straight month as net sellers amid ongoing geopolitical tensions.

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Foreign portfolio investors have pulled out rs 27,000 crore from indian markets during may. Total outflows for 2026 have now reached rs 2.2 lakh crore. Analysts link the trend to ongoing global uncertainties.

Benchmark indices Nifty and Sensex climbed over 0.9% and 1% respectively on Tuesday, amid short covering in anticipation of US-Iran peace talks following the recent ceasefire. Foreign institutional investor selling also eased, supporting the rebound.

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Among 68 high-priced stocks trading above Rs 5,000 on the BSE, FY26 has brought more declines than gains amid global uncertainty and geopolitical tensions. The top six laggards fell 25-40%, while top gainers surged 40-130%. Institutional holdings vary across these stocks.

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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Indian stock markets experienced a significant downturn on Friday. The decline was driven by geopolitical tensions between the US and Iran along with a weakening rupee.

 

 

 

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