Why did FPIs sell Indian equities in early March 2026?

FPIs sold Indian equities due to geopolitical tensions in the Middle East, concerns about oil supply disruptions and crude oil price increases, and rupee depreciation.

How much money did FPIs withdraw from Indian markets in the week ending March 6, 2026?

FPIs withdrew a net of approximately $2.29 billion (₹20,818.71 crore) from Indian markets over four trading sessions.

What impact did FPI selling have on Indian stock markets?

The selling pressure led to a significant drop in major indices, with the Nifty 50 falling 2.89% and the BSE Sensex shedding 2.91% during the week.

Home / Business and Economy / FPIs Flee India: $2.29B Outflow Amid Mideast Conflict

FPIs Flee India: $2.29B Outflow Amid Mideast Conflict

7 Mar

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Summary

FPIs net sold ₹20,818.71 crore in Indian markets over four sessions.
Middle East conflict cited as primary driver for sustained FPI selling.
Nifty 50 and BSE Sensex saw significant percentage drops over the week.

FPIs Flee India: $2.29B Outflow Amid Mideast Conflict

Foreign portfolio investors (FPIs) withdrew a net of ₹20,818.71 crore ($2.29 billion) from Indian markets between March 2 and March 6, 2026. This outflow occurred over four trading sessions, with equity markets experiencing the most significant selling. On March 5 alone, FPIs divested ₹11,141.74 crore, primarily from equities.

The geopolitical tensions in the Middle East, particularly the conflict involving the United States, Israel, and Iran, have been identified as a major catalyst for these outflows. Concerns over potential disruptions to global oil supplies and a subsequent rise in crude oil prices, coupled with the rupee's depreciation, have contributed to FPIs' cautious stance.