Soaring energy costs have hurt oil-importing Asian peers, but the scale of outflows from India points to already bearish global sentiment
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.
Analysts believe a lot now depends on what Trump does after the 5-day ceasefire and how crude oil prices, bond yields play out.
Foreign investors have pulled out Rs 88,180 crore (about USD 9.6 billion) from Indian equities so far this month, weighed down by escalating tensions in West Asia, a weakening rupee and concerns over the impact of elevated crude oil prices on India's growth and corporate earnings. The sharp sell-off follows a strong rebound in February, when foreign portfolio investors (FPIs) pumped in Rs 22,615 crore, the highest monthly inflow in 17 months, according to NSDL data. With the latest withdrawals, total FPI outflows have crossed the Rs 1 lakh crore-mark so far in 2026. In March (till March 20), FPIs have remained net sellers on every trading day, offloading equities worth Rs 88,180 crore in the cash market. However, the outflow is still lower than the record monthly exodus of Rs 94,017 crore seen in October 2024. Market participants attributed the sustained selling pressure to global macroeconomic headwinds and heightened geopolitical uncertainty. Vaqarjaved Khan, Senior Fundamental
Sebi WTM Kamlesh Chandra Varshney says recent market correction has made Indian equities attractive for FPIs, while highlighting opportunities for Russian firms to raise capital and list locally
Relaxations for REITs and InvITs, and intermediaries on 'fit and proper' criteria also on the agenda
So far this year, global funds have sold Indian equities worth ₹86,285 crore, according to NSDL data. In calendar year 2025, total FPI outflows stood at over ₹1.66 trillion
Foreign investors withdrew Rs 52,704 crore (approximately USD 5.73 billion) from domestic equities in the first fortnight of March amid escalating tensions in West Asia, the depreciation of the rupee, and concerns over the impact of high crude oil prices on India's growth and corporate earnings. The latest sell-off comes after foreign portfolio investors (FPIs) infused Rs 22,615 crore into Indian equities in February, the highest monthly inflow in 17 months. Prior to that, FPIs were net sellers for three consecutive months, withdrawing Rs 35,962 crore in January, Rs 22,611 crore in December and Rs 3,765 crore in November, according to depository data. So far in March (until March 13), FPIs have sold equities worth about Rs 52,704 crore in the cash market and remained net sellers on all trading days during the month. Market experts attributed the pullout mainly to rising geopolitical tensions in West Asia. Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, said escalating ..
Foreign portfolio investors' (FPI) bets in Fully Accessible Route (FAR) government securities have declined by about Rs 4,634 crore since the start of the Middle East conflict, reflecting growing caution among overseas investors amid rising crude oil prices, a weakening rupee and rising bond yields. Data from the Clearing Corporation of India Ltd (CCIL) showed that total FPI investment in FAR securities stood at about Rs 3.26 lakh crore on Tuesday, down from Rs 3.31 lakh crore on February 27, before the conflict began. The selling pressure has emerged as global markets reacted sharply to escalating tensions in the Middle East, which have triggered a spike in crude oil prices and volatility in emerging market assets. Brent crude prices have surged past USD 100 per barrel and were trading around USD 108 per barrel, raising concerns about inflationary pressures and India's external balance. At the same time, the rupee weakened sharply to below 92 against the US dollar, while the ...
Foreign investors pulled out Rs 21,000 crore (around USD 2.3 billion) from Indian equities over the last four trading sessions amid deteriorating global risk sentiment triggered by the West Asia crisis. The latest sell-off comes after foreign portfolio investors (FPIs) infused Rs 22,615 crore into Indian equities in February, the highest monthly inflow in 17 months. Prior to that, FPIs had been net sellers for three consecutive months. They withdrew Rs 35,962 crore in January, Rs 22,611 crore in December, and Rs 3,765 crore in November, according to data from the depositories. The latest outflows occurred during March 2-6, when FPIs sold equities worth about Rs 21,000 crore in the cash market. March 3 was a trading holiday on account of Holi. Market experts attributed the pullout primarily to the rising geopolitical tensions in West Asia. The US and Israel launched a major attack on Iran on February 28 which killed Iran's Supreme Leader Ayatollah Ali Khamenei, triggering conflict
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
Sebi chief Tuhin Kanta Pandey told investors India is shaping transparent, credible and resilient markets, aiming to attract long-term institutional capital amid global uncertainty
In January 2026, mutual funds increased their exposure to domestic sectors such as services, cement, real estate, consumer services, financial services, and power & utilities
Heavy selling in defensive and consumption-related industries like FMCG, healthcare, and consumer services drove the January outflows
The India-US trade deal, Antique believes, is significantly positive for Indian equities as FPI equity outflow of $34 billion since October 2024, the highest among emerging markets (EMs), may reverse
Since October 2025, Bank of India, Union Bank of India and Canara Bank have surged between 29 - 34 per cent. FPIs have increased stake in select PSU Banks by up to 3 per centage points.
Market participants broadly view judgment as fact-specific, centered on interpretation of grandfathering provisions under the India-Mauritius tax treaty and application of General Anti-Avoidance Rule
The US strike on Venezuela may cause short-term jitters in Indian markets, but trade deal uncertainty, FPI flows and geopolitics remain the bigger overhang
Foreign portfolio investors have started 2026 on a cautious note, extending their selling streak from last year by withdrawing Rs 7,608 crore (USD 846 million) from Indian equities in the first two trading sessions of January. The withdrawal of funds followed the largest outflow of Rs 1.66 lakh crore (USD 18.9 billion) recorded in 2025, triggered by volatile currency movements, global trade tensions and concerns over potential US tariffs, and stretched market valuations. This sustained selling pressure by foreign portfolio investors (FPIs) has significantly contributed to the nearly 5 per cent depreciation of the rupee against the dollar during 2025. However, market experts believe the tide could turn in 2026. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the year is likely to witness a shift in FPI strategy, as improving domestic fundamentals may start attracting net foreign inflows. A robust GDP growth and the prospects of a recovery in corporate earnin
Foreign portfolio investors recorded their highest single-day debt inflow in seven months on January 1, even as they exited FAR securities in December amid rupee weakness