FPIs have reduced shareholding in large-cap stocks like HDFC Bank, Reliance and Infosys since 2022 while increasing exposure to Paytm, Eternal, Polycab and healthcare stocks, ICICI Securities said
Elevated crude oil prices further worsen India's inflation-growth trade-off by putting pressure on the rupee, widening the current account deficit, & limiting the scope for aggressive monetary easing
If crude prices remain elevated for an extended period, trade and CAD will further widen, impacting the rupee more. The rupee might depreciate to 100, and trigger more FPI outflows.
While the bulk of foreign selling is likely over after the outflows over the recent months, Goldman Sachs does not see foreign investors returning to Indian shores in a hurry, even if oil prices dip.
Rupee hit a record low of 95.32 vs dollar on Thursday. Going ahead, analysts see further downside with 96-97 levels in focus as oil surge, FII outflows and hawkish US Fed weigh on outlook
India, which imports 90 per cent of its energy needs and relies heavily on supplies from West Asia, is among the most vulnerable to the energy shock
From their February 27, 2026, level, the Nifty Smallcap 100 index rallied 6.5 per cent, while the Nifty Midcap 100 index gained 2.2 per cent. In comparison, the Nifty 50 and BSE Sensex are still down.
In just over three months, they have pulled $18.84 billion from local shares, edging past the full-year record outflow of $18.79 billion seen in 2025, according to Central Depository Services India
BSE Sensex fell 900 pts intraday and Nifty slipped below 23,800 amid US-Iran tensions, oil surge, and FII selling. Here are 6 key reasons that are driving today's stock market decline.
FIIs have turned cautious on Indian equities, selling ₹1.07 trillion amid Iran war risks. BNP Paribas flags oil, inflation, CAD and earnings concerns.
Analysts expect FIIs to stay cautious on Indian equities in H1FY27 as global risks weigh. They, however, see flows returning in H2FY27. Strong DII inflows could also support Indian markets.
For FII's, the favored markets over last two years have been countries that were beneficiaries of new age tech and artificial intelligence (AI), he said.
The BSE benchmark fell around 659 points to hit a low of 81,589 against the previous close of 82,258.66. Likewise, the NSE Nifty index dropped 228 points to touch a low of 25,268
Heavy selling in defensive and consumption-related industries like FMCG, healthcare, and consumer services drove the January outflows
The BSE Sensex tumbled 803 points in the intraday to hit a low of 84,909, and the NSE Nifty50 also slipped below the 26,000 mark in the intraday to hit a low of 25,902.95
The strong domestic flow, meanwhile, offset the selling by foreign portfolio investors (FPIs) during CY25, who pulled out $23.3 billion (Rs 2.03 trillion) from the domestic equity markets.
The near-record selling by foreign investors has come at a time when policymakers have already played their best cards, for now, analysts opine.
Stock market crash: The Sensex fell 827.27 points, or 1.01 per cent, to an intraday low of 80,332.41, while the Nifty50 dropped 261.4 points, or 1.05 per cent, to 24,629.45 levels.
Kotak Securities said that $90 billion of DII inflows and a flat market show that flows alone don't drive markets
Thus far in calendar year 2025 (CY25), foreign institutional investors have dumped Indian equities worth Rs 1.17 trillion, shows NSDL data