FPIs Pull Out Rs 35,475 Crore in a Week as March Outflows Hit Rs 88,180 Crore

Foreign portfolio investors (FPIs) extended their selling streak in Indian equities this week, withdrawing a massive Rs 35,475 crore, according to data from the National Securities Depository Limited.

The week saw sustained selling pressure, with the highest outflows recorded on Monday at Rs 10,827 crore. This was followed by Rs 9,406.78 crore on Tuesday and Rs 4,376.02 crore on Wednesday. While Thursday remained a settlement holiday due to the Gudi Padwa festival, Friday witnessed another sharp sell-off of Rs 10,965.74 crore.

The continued exodus reflects a cautious global mood, as investors grapple with geopolitical instability and rising macroeconomic risks.

How are global tensions and crude oil prices shaping investor sentiment?

So far in March, total net FPI outflows have surged to Rs 88,180 crore, marking the highest monthly withdrawal in 2026. These figures factor in stock exchange activity after adjusting for primary market investments and other segments.

Market experts point to escalating tensions in West Asia and elevated crude oil prices as key drivers behind the negative sentiment.

Vinod Nair, Head of Research at Geojit Financial Services, said, “Market sentiment remained cautious amid persistent Middle East tensions during the week, with elevated crude oil prices, and continued FII selling. Although the domestic equities saw a brief relief-led recovery on valuation comfort and short covering early in the week, the rally quickly reversed as renewed Middle East attacks pushed crude prices higher, reviving inflationary and macroeconomic concerns.”

What makes FPI flows so critical for Indian markets?

Foreign Portfolio Investment (FPI) refers to overseas investments in financial assets such as stocks, bonds, or mutual funds, typically aimed at short-term gains without ownership control.

Often dubbed “hot money,” these flows are highly liquid and can move rapidly in and out of markets, making them a crucial driver of capital movement in emerging economies like India.

In India, FPI investments are regulated by the Securities and Exchange Board of India.

The sustained outflows underscore how sensitive Indian markets remain to global cues, with investors closely watching geopolitical developments and crude oil trends for the next directional trigger.

(With inputs from ANI)