Foreign Portfolio Investors (FPIs) withdrew ₹52,704 crore, or about $5.73 billion, from Indian equities during the first half of March, according to depository data. The selling was recorded in the cash market until March 13, 2026.
Data shows FPIs remained net sellers on each trading day during the period. The withdrawal follows a short phase of buying in the previous month.
In February, foreign investors had invested ₹22,615 crore in Indian equities. The figure marked the highest monthly inflow in nearly 17 months.
The March outflows therefore represent a reversal after the brief increase in overseas investment recorded in February.
Reports suggest that the selling in early March came alongside rising tensions in West Asia. Concerns about a possible expansion of the conflict and risks to oil supply routes pushed crude prices higher.
Brent crude oil moved above $100 per barrel during the period. Higher crude prices often raise import costs for India and can increase pressure on company expenses.
The Indian rupee weakened during the month and traded near the ₹92 level against the US dollar. Currency movements can influence returns for foreign investors holding rupee-denominated assets.
Global financial conditions also remained tight. US bond yields stayed elevated, and several global equity markets saw volatility during the period.
Foreign portfolio flows into Indian equities have been uneven over the past few months. Before February’s inflows, FPIs had reduced exposure for 3 straight months.
Depository data shows outflows of ₹35,962 crore in January, ₹22,611 crore in December and ₹3,765 crore in November.
Among sectors, information technology stocks recorded the largest FPI selling in 2025 so far. The sector saw withdrawals of about ₹74,700 crore.
FMCG companies saw outflows of nearly ₹36,800 crore, while power and healthcare stocks recorded selling in the range of ₹24,000-26,000 crore.
Read More: Power Sector Shines: Indian Power Stocks Attract $497 Million FII Investment in February!
Recent data shows foreign investment flows continuing to fluctuate in response to global developments, currency movements and commodity prices during the early months of the year.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 16, 2026, 3:33 PM IST
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