FPI Outflow: ‘Great exodus’ of foreign investors, ₹88,000 crore wiped out from the domestic stock market; Know what is the real reason

FPI Outflow In Share Market: The last few times have been full of ups and downs for the Indian stock market. On one hand, domestic investors are trying to control the market, on the other hand, the attitude of foreign investors (FPIs) has increased everyone’s concern. Amidst the geopolitical turmoil around the world and rising crude oil prices, foreign investors have started withdrawing from the Indian market. Let us know why foreign investors are withdrawing their money from India and what are the reasons behind it.

According to NSDL data, so far in March, foreign portfolio investors have withdrawn Rs 88,180 crore from the Indian stock market. If seen in dollars, this amount comes to around $9.6 billion. The special thing is that till 20th of March, FPIs remained net sellers in every trading session. That is, they continuously sold shares and took money out of the market.

FPI were buyers in February

Although this withdrawal is very large, it is still slightly less than the record withdrawal of Rs 94,017 crore made in October 2024. Still, this figure of March is so big that there is a lot of discussion about it in the market. To understand this huge selling in March, it is important to look at the February figures also. In February, the same foreign portfolio investors had become buyers by investing Rs 22,615 crore in Indian shares. This was the highest investment figure in 17 months.

That is, till a month ago, foreign investors were buying in the Indian market, but by March, their attitude completely changed. Adding the recent withdrawals, so far in the year 2026, FPIs have withdrawn more than Rs 1 lakh crore from the Indian stock market.

Why are foreign investors running away?

• Middle East crisis and expensive oil: According to Angel One expert Wakarjaved Khan, the biggest reason is the ongoing conflict in West Asia. Crude oil prices have crossed $ 100 per barrel due to the news of the closure of the Strait of Hormuz. When oil is expensive, the risk of inflation increases for emerging economies like India, which scares away foreign investors.
• The attractiveness of the dollar and US bonds: Himanshu Srivastava of Morningstar India says that bond yields are increasing in America. When investments in the US are safe and offer high returns, investors prefer to withdraw money from markets like India and invest in dollar assets.
• Rupee weakening: According to VK Vijayakumar of Geojit Investments, the continuously falling value of the rupee and fears of declining corporate earnings have hurt investor confidence.

Also read: Petrol and diesel became expensive by 25% in one stroke, after Pakistan, now there is an outcry in this country; Know what is the real reason

At this time, this selling by FPI is not just a figure, but also an indication of the mood of the market. foreign investors At present, we are cautious and are watching the situation in West Asia, oil prices, movement of rupee and global signals very carefully.