New Delhi: In a major concern for the Stock Market players, Foreign investors have withdrawn Rs 88,180 crore (about USD 9.6 billion) from the domestic market so far in March. The FIIs pulled out money as tensions escalated in West Asia, Rupee weakening against US Dollar and concerns over the impact of elevated crude oil prices on India’s growth and corporate earnings.
The NSDL data showed that in February, the foreign investors had made a comeback by pumping in Rs 22,615 crore, the highest monthly inflow in 17 months. As of March 19, 2026, the total FPI outflows have crossed the Rs 1 lakh crore-mark so far in 2026.
Till March 20, FPIs have sold on every single day trading day, offloading equities worth Rs 88,180 crore in the cash market. However, the outflow is still lower than the record monthly selling by FIIs of Rs 94,017 crore in October 2024.
FII Selling trends & Rupee depreciation concerns
Market players said that the foreign investors sold equities in the Indian market due to sustained selling pressure to global macroeconomic headwinds and heightened geopolitical uncertainty.
Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, said the sell off was a result of the sharp escalation in Middle East tensions, with fears of prolonged conflict and potential disruption to the Strait of Hormuz pushing Brent crude above USD 100, fuelling a classic risk-off move, PTI reported.
The expert further said that selling trends was also result of the weakening Rupee which has hovered near Rs 92 against the US dollar, elevated US bond yields, profit-booking after the February inflows, and mixed Q4 earnings outlook indicating margin pressures in key sectors.
V K Vijayakumar, Chief Investment Strategist at Geojit Investments, also attributed the heavy selling of foreign investors due to the conflict in West Asia. He further said that weakness in global equity markets, Rupee’s value depreciation and worries over the impact of high crude prices on India’s growth and earnings have all weighed on investor sentiment.
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