U.S.-Iran conflict sparks record ₹1.17L/cr March outflow, fiscal year ₹1.8L/cr
March 2026 saw foreign investors pull out a record ₹1.17 lakh crore from Indian markets, the biggest single-month exit ever.
This rush to leave was mainly sparked by the U.S.-Iran conflict that began in late February.
By the end of the fiscal year, total FPI outflows hit ₹1.8 lakh crore, a new annual high.
Nifty 50 Sensex and rupee slump
This huge exit shook up Indian markets: Nifty 50 dropped 5.1%, Sensex fell 7.1%, and the rupee lost 4% of its value, raising worries about inflation and stability.
According to VK Vijayakumar from Geojit Investments, it wasn't just India feeling the heat: other countries like Taiwan and South Korea also saw investors get cautious as global risks rose.
High oil prices, worries about fewer remittances, and tech sector troubles added more stress, showing things might only turn around if tensions ease and oil prices settle down.