Foreign investors pull ₹20,800cr from India markets
What's the story
Foreign portfolio investors (FPIs) have pulled out a whopping ₹20,818.71 crore (nearly $2.29 billion) from Indian markets in the week ending March 6, 2026. The data was revealed by the National Securities Depository Limited (NSDL). The withdrawal spanned across equity, debt, and other instruments over four trading sessions from March 2 to March 6.
Market impact
Breakdown of FPI outflows during the week
The highest FPI outflow was on March 5, when FPIs recorded a net withdrawal of ₹11,141.74 crore in a single session. This was mainly due to equity sales. On that day alone, equity accounted for a net outflow of ₹9,113.42 crore on the stock exchange segment. The second-largest outflow was recorded on March 2 at ₹4,593.97 crore followed by March 6 (₹3,162.11 crore) and March 4 (₹1,920.89 crore).
Market trends
Equity markets take biggest hit
The equity markets took the biggest hit from FPI selling during this period. Net outflows from equity over the four sessions totaled ₹21,000 crore. On March 5 alone, the gross equity purchases stood at ₹20,256.26 crore against gross sales of ₹29,369.68 crore, marking a difference of over ₹9,000 crore.
Market analysis
Debt markets present mixed picture
The debt markets presented a mixed picture during this period. The Debt-FAR (Fully Accessible Route) segment saw a net inflow of ₹1,959.56 crore on March 2 but turned negative on March 5 and March 6 with net outflows of ₹1,068.20 crore and ₹172.53 crore, respectively. The Debt-VRR segment was the only consistent positive contributor, recording a net inflow of ₹619.01 crore on March 6.
Currency impact
Rupee weakens amid capital outflows
The rupee also weakened during this period, with the dollar-rupee conversion rate moving from ₹90.95 on March 2 to ₹91.63 on March 6. This was in line with the pressure from sustained capital outflows. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, attributed these outflows to uncertainty over the Middle East conflict and its impact on global oil prices and India's economy.
Market resilience
Domestic investors step in to support market
Despite the heavy selling by FPIs, domestic institutional investors (DIIs) continued to absorb the pressure. They invested ₹32,787 crore during this period. Mutual fund SIP inflows also helped stabilize the market. Dr. Vijayakumar said that "the market is now being supported by DII buying and sustained mutual fund SIP inflows." He added further correction in the market would make valuations attractive but strong buying would only emerge when geopolitical tensions ease and crude prices decline.