Foreign investors have withdrawn a record ₹1.14 lakh crore (around USD 12.3 billion) from Indian equities in March, marking the largest monthly outflow in the country’s history. Rising geopolitical tensions in West Asia, a weakening rupee, and concerns over high crude oil prices affecting economic growth have driven the sell-off.
With one trading session left in the month, analysts expect outflows could climb even higher, breaking the previous record of ₹94,017 crore set in October 2024. So far in 2026, foreign portfolio investors (FPIs) have pulled out ₹1.27 lakh crore, showing sustained caution amid global and domestic uncertainties.
Market experts say the withdrawals reflect how sensitive foreign capital remains to both international developments and domestic macroeconomic signals. “While India’s fundamentals are strong, investors are closely monitoring currency volatility and external risks before committing more funds,” noted a senior market strategist.
The coming months will be crucial to see whether foreign inflows stabilize or continue, potentially influencing market sentiment and liquidity.
