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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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 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.

Vanguard Funds, a top foreign institutional investor in India, saw its equity holdings in 48 BSE-listed companies reach Rs 69,100 crore as of February 27, 2026. This marks a 60% increase from Rs 43,047 crore in the March quarter, driven by strong performances in several stocks during FY26. The portfolio includes new investments in eight companies from the December 2025 quarter.

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Domestic institutional investors raised their holdings in several large-cap Indian companies during the March 2026 quarter. Buying focused on financial, technology, telecom and industrial names even as share prices fell sharply.

India's banking system liquidity surplus has narrowed to ₹75,483 crore amid advance tax outflows of Rs 2 lakh crore and forex market interventions. Money market rates rose as a result, leading the Reserve Bank of India to conduct a repo operation. Economists estimate the RBI sold over $15 billion to support the rupee.

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Indian benchmark indices Sensex and Nifty closed nearly 6% higher for the week, snapping a six-week losing streak after a ceasefire between the US and Iran. Both indices rose 1.2% on Friday. Investors adopted a risk-on approach amid reduced volatility.

 

 

 

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