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Foreign Investors’ March Selloff in India Nears Record Rs 94,000 Crore

Escalating West Asia tensions have pushed foreign investors to seek safety.

Overview

  • Net selling has reached Rs 93,698 crore so far in March, putting flows within roughly Rs 500 crore of the October 2024 record Rs 94,017 crore.
  • Weekly withdrawals totaled Rs 35,475 crore, with FPIs selling on every trading day through March 20, according to NSDL data.
  • Cumulative foreign portfolio outflows in 2026 have crossed Rs 1 lakh crore, reversing February’s inflow.
  • Analysts point to higher crude prices above $100 a barrel, a weaker rupee near Rs 92 per dollar, and firmer US Treasury yields as key drivers of risk-off positioning.
  • Financial services took the largest hit with Rs 31,831 crore sold in the fortnight ended March 15, while market gauges saw steep monthly declines, including an about 8.3% drop on the Sensex.