FII Selling In India: Foreign investors are continuously selling in India. According to NSDL data, foreign investors have sold Rs 88,180 crore (about USD 9.6 billion) in March so far.
The sharp selling in March came after a strong rebound in February, when foreign investors purchased shares worth Rs 22,615 crore. This was the highest monthly inflow in 17 months.
With the latest selling in March, the total FPI outflows have crossed the Rs 1 lakh crore mark so far in 2026.
In March (till March 20), FPIs have remained net sellers on every trading day, offloading equities worth Rs 88,180 crore in the cash market. However, the outflow is still lower than the record monthly exodus of Rs 94,017 crore seen in October 2024.
Why FIIs Are Selling In India: Key Reasons
Foreign investors selling escalated maid tensions in Middle east, weakening rupee and elevated crude oil prices.
Middle East Tensions: The primary trigger has been the sharp escalation in Middle East tensions, with fears of prolonged conflict and potential disruption to the Strait of Hormuz pushing Brent crude above USD 100, fuelling a classic risk-off move.
Weak Rupee: Vaqarjaved Khan, senior fundamental analyst at Angel One, said that the trend has been exacerbated by the rupee hovering near Rs 93 against the US dollar, elevated US bond yields, profit-booking after the February inflows, and mixed Q4 earnings outlook indicating margin pressures in key sectors.
US Yields: Rising US Treasury yields is another key reason behind the selling. Higher yields have improved the relative attractiveness of dollar-denominated assets, prompting capital to move away from emerging markets like India. This shift is typically accompanied by a stronger dollar and tighter global liquidity, further dampening sentiment towards emerging market equities.
