Foreign investors stay on selling spree, pull out record Rs 1.14 lakh cr in March

Indian equity markets successful March saw overseas investors pulling retired Rs 1.14 lakh crore, making it the highest monthly outflow connected record. The crisp withdrawal has been mostly attributed to rising tensions successful the Middle East, unit connected rupee, and increasing concerns implicit however elevated crude lipid prices could measurement connected the country's growth.With conscionable 1 much trading league near successful the month, the last tally mightiness ascent further. The erstwhile highest for monthly outflows was Rs 94,017 crore successful October 2024.Data from NSDL shows that full outflows by overseas portfolio investors (FPIs) person reached Rs 1.27 lakh crore truthful acold successful 2026. The selling inclination has been accordant done March, with FPIs offloading equities worthy Rs 1,13,380 crore successful the currency conception up to March 27.

This marks a crisp turnaround from February, erstwhile FPIs had infused Rs 22,615 crore into equities — the highest monthly inflow recorded successful 17 months.The ongoing sell-off is being linked to a operation of planetary economical pressures and geopolitical uncertainty. VK Vijayakumar, Chief Investment Strategist astatine Geojit Investments, said the weakness successful planetary equity markets pursuing the warfare successful West Asia, the dependable depreciation of the rupee, fears of diminution successful remittances from the Gulf portion and concerns surrounding the interaction of precocious crude prices connected India's maturation and firm net contributed to the sustained selling by FPIs.

Himanshu Srivastava, Principal, Manager Research astatine Morningstar Investment Research India, pointed to further factors driving the trend. He said the selling has been driven by a operation of elevated US enslaved yields and tightening planetary liquidity, which person improved the comparative attractiveness of developed marketplace fixed income.He added that adjacent though Indian equity valuations person moderated with the caller marketplace fall, they proceed to beryllium comparatively precocious compared to respective emerging marketplace peers, starring to selective nett booking and reallocation.The inclination is not confined to India. FPIs person besides been sellers successful different emerging markets specified arsenic Taiwan and South Korea, amid a broader displacement towards hazard aversion successful planetary equity markets pursuing the outbreak of warfare successful West Asia.