Panic in the share market! Foreign investors have taken over; As much as Rs 52704 crore has been withdrawn in March so far
- FPI confidence in Indian market shaken
- Sales flat again after February’s surge
- Why did investors turn away?
FPI withdrawn 52704 crore : March 2026 seems to be a very challenging month for the Indian stock market. Rising tensions in West Asia, depreciating rupee and rising crude oil prices have shaken foreign portfolio investor (FPI) confidence in the Indian market. As a result, foreign investors have withdrawn Rs 52,704 crore (about $5.73 billion) from the Indian market in the first 15 days of March.
Stability of India’s Gems and Jewelery exports despite the global crisis; A huge jump of 51% in silver exports!
Sales flat again after February’s surge
Notably, in the month of February, foreign investors invested Rs 22,615 crore in the Indian stock market, which was the highest in the last 17 months. However, as soon as March begins, the picture has changed again. Earlier, foreign investors sold Rs 35,962 crore in January, Rs 22,611 crore in December and Rs 3,765 crore in November.
Why did investors turn away?
According to market experts, there are mainly three major reasons behind this huge sell-off: Geo-political tension: Due to the growing conflict in West Asia (Iran-Israel-US) there is a sense of fear in the global market. According to Waqar Javed Khan, an expert at ‘Angel One’, the conflict in the Strait of Hormuz has pushed crude oil prices (Brent crude) past $100 per barrel.
Historical fall of Rupee: The rupee has currently reached a level of 92 against the dollar. As the rupee weakens, foreign investors are finding it difficult to get returns on their investments in the Indian market.
China-Taiwan tie-up: Chief Strategist of ‘Jeojit Investments’ V. K. According to Vijayakumar, the markets of South Korea, Taiwan and China are currently looking more attractive compared to India. Therefore, investors are withdrawing their money from the Indian market and diverting it to other countries.
Fear of impact on corporate earnings
Corporate earnings of Indian companies are likely to be affected due to rising crude oil prices. Foreign investors are currently in a ‘wait and watch’ role due to the fear that if inflation increases, the growth rate of the country may also be affected.
Important Notice: This article is for informational purposes only. Investing in the stock market is subject to risk. Be sure to consult your financial advisor before making any investment.
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