Foreign investors have withdrawn 88,180 crore rupees from Indian equities up to the third week of March. Escalating geopolitical tensions, rising crude oil prices, and hawkish commentary from the Federal Reserve have weighed on investor sentiment.

 

As per depositories’ data, the total net outflow of foreign investment from the Indian capital market has crossed 1 lakh crore rupees so far in March. However, FPIs have infused 187 crore rupees into Indian debt markets during the same period.

 

The sell-off marks a sharp reversal after strong inflows in February, when FPIs had infused 22,615 crore rupees into the Indian equities, the highest monthly inflow in 17 months.

Before that, FPIs had been net sellers of shares for three consecutive months, withdrawing 35,962 crore rupees in January, 22,611 crore rupees in December, and 3,765 crore rupees in November last year.