Synopsis
Foreign institutional investors (FIIs) sold domestic stocks worth Rs 1,13,810 crore in March, continuing their selling trends amid the Iran-Israel war. So far this year, they have divested Indian stocks worth Rs 1,27,157 crore.
AgenciesForeign institutional investors offloaded Indian stocks worth Rs 1,27,157 crore in March, marking the worst month this year. Foreign institutional investors (FII) discharged nationally actions worth Rs 1,13,810 crore in March, continuing their sales trends amid the Iran-Israel war. So far this year, they have divested Indian stocks worth Rs 1,27,157 crore.
This has turned out to be the worst month so far as foreign investors continue to exit their Indian investments. investments amid the Iran-Israel war.
Commenting on current trends, Dr VK Vijayakumar, chief investment strategist at Geojit Investments, said weak global stock markets following the war in West Asia, steady depreciation of the rupee, fears of a decline in remittances from the Gulf region and concerns over the impact of high crude prices on India’s growth and corporate profits contributed to the sustained sales by REIT.
“It is important to understand that FPIs were also sellers in other emerging markets, such as Taiwan and South Korea. There is a trend of risk aversion in equity markets globally following the outbreak of war in West Asia. India’s low returns relative to other markets – developed and emerging – over the last eighteen months are the main reason for FPI’s indifference towards India. If their selling strategy sustainable must change, there should be an end to hostilities in West Asia and a fall in crude prices,” Vijayakumar said.
On Friday, FIIs sold domestic stocks at Rs 4,367.30 crore while DIIs were net buyers at Rs 3,566.15 crore.
India’s frontline indices ended their two-session rise amid sharp declines as the failure of Iran-US talks dented market sentiment. High energy prices and the falling rupee have added to the woes of domestic investors. In a context of high volatility, the markets were mainly penalized by financial, automobile and consumer stocks. Nifty settled at 22,819.60, down 486.85 points or 2.09 per cent while the BSE Sensex closed at 73,583.22, down 1,690.23 points or 2.25 per cent.
FIIs in 2026
Foreign investors turned net buyers in February, purchasing shares worth Rs 22,615 crore in the domestic markets so far. In January, they sold Rs 35,962 crore worth of shares.
In 2025, FII buying trends remained uneven, but the overall trend was bearish. They took Rs 1,66,286 crore from Indian markets as delayed trade deals and premium valuations weighed on sentiments.
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