Foreign investors pull out record ₹1.12 trillion from Indian stocks
What's the story
Foreign portfolio investors (FPIs) have sold a record ₹1.12 lakh crore worth of Indian equities in March, according to data from the National Securities Depository Ltd. (NSDL). This is the biggest monthly outflow ever recorded, surpassing the previous high of ₹94,017 crore in October 2024. The massive sell-off comes as markets remain vulnerable to oil price shocks and other global uncertainties.
Market impact
Sell-off across all investment categories
Along with equities, FPIs also sold ₹1,398 crore in mutual funds and ₹335 crore in the debt category. The equity mutual fund sales were moderate at ₹142 crore. This broad-based sell-off comes as FPIs had recently started favoring passive investments in the Indian market. Overall, FPIs sold a total of ₹1.23 lakh crore in March and ₹1.15 lakh crore between January and March 2026 across all investment modes.
Sector analysis
Financial services, automobile sectors worst hit
Between March 1 and 15, the period for which sector-wise data is available, FPIs sold ₹31,831 crore of stocks in financial services. The automobile sector followed closely with foreign funds selling over ₹4,807 crore worth of stocks. Despite the broad-based sell-off, FPIs had bought stocks worth ₹3,897 crore in the capital goods sector and less than ₹1,000 crore worth shares in chemicals consumer services and metals mining.
Investor sentiment
BNP Paribas on foreign investors' sentiment
In its March Strategy report, BNP Paribas said, "Investors largely agreed on the improving macro and earnings outlook, but the main pushback was on a lack of compelling narrative or immediate reasons to buy." The firm added that the Middle East conflict and India's high dependence on oil imports are likely to dent foreign investors' sentiment.