FPIs Pull ₹52,704 Crore From Indian Equities So Far In March

Foreign portfolio investors (FPIs) sharply reduced their exposure to Indian equities in March 2026, leading to heavy selling in the market.

Depository data shows that overseas investors pulled out ₹52,704 crore, or roughly $5.73 billion, from the cash segment during the first half of March.

Why Has Selling Continued Throughout March?

Foreign investors have remained net sellers on every trading day so far this month.

The current selling phase follows a brief recovery in February 2026. During that month, foreign investors had invested ₹22,615 crore in Indian equities, marking the strongest monthly inflow in about 17 months.

Before that rebound, markets had already witnessed sustained outflows. FPIs withdrew:

• ₹35,962 crore in January 2026,

• ₹22,611 crore in December 2025, and

• ₹3,765 crore in November 2025

Indicating that overseas participation in the market has been uneven for several months.

How Are Oil Prices Affecting Markets?

A fuel price hike is a matter of concern for many oil-importing countries, including India. Tensions in West Asia have caused a surge in Brent crude prices, which are already above $100 per barrel.

At the same time, the Indian rupee has fallen and is fluctuating near the ₹92 per dollar level. Besides, a strong US dollar and a rise in global bond yields have been factors for the investors' decision to be more cautious towards the emerging markets.

The risk that the war in the region may lead to the blockage of shipments through the Strait of Hormuz, which is the main route for global energy trade, has added to the uncertainty in the market.

Which Sectors Are Seeing Outflows?

Foreign investors' selling has not been equal across sectors. Information technology stocks are the ones where the largest withdrawals occurred in 2025, amounting to close to ₹74,700 crore flowing out due to lowered growth expectations.

The FMCG sector has also remained a target of offloading by investors, with nearly ₹36,800 crore leaving the segment on account of weaker consumer demand and margin pressures.

Power and healthcare shares, which have been among the favoured defensive plays this year, are estimated to have experienced outflows of around ₹24,000-26,000 crore, as the latter concerns have largely to do with the pace of earnings growth.

On the contrary, exposure to telecom, oil and gas, metals and chemicals has gone up.

Also Read - Vedanta Ltd To Raise ₹2,575 Crore Through Non-Convertible Debentures

What Can People Expect Next?

Market participants expect foreign investor activity to remain cautious in the near term. Much will depend on how global developments unfold, especially oil prices and geopolitical tensions.

If crude prices stabilise and global sentiment improves, selling pressure may ease. Strong earnings from banking and consumption could help market sentiment.

But if oil prices keep rising or geopolitical risks increase, foreign investors might stay cautious.

Sources:

Timesnownews

CNBC TV18