FPIs offload Rs 21,000-cr in last four sessions
New Delhi: Foreign investors pulled out Rs 21,000 crore (around $2.3 billion) from Indian equities over the last four trading sessions amid deteriorating global risk sentiment triggered by the West Asia crisis. The latest sell-off comes after foreign portfolio investors (FPIs) infused Rs 22,615 crore into Indian equities in February, the highest monthly inflow in 17 months.
Prior to that, FPIs had been net sellers for three consecutive months. They withdrew Rs 35,962 crore in January, Rs 22,611 crore in December, and Rs 3,765 crore in November, according to data from the depositories. The latest outflows occurred during March 2-6, when FPIs sold equities worth about Rs 21,000 crore in the cash market. March 3 was a trading holiday on account of Holi. Market experts attributed the pullout primarily to the rising geopolitical tensions in West Asia. The US and Israel launched a major attack on Iran on February 28 which killed Iran's Supreme Leader Ayatollah Ali Khamenei, triggering conflict in the region.
Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, said fears of potential disruptions in the Strait of Hormuz pushed Brent crude prices above $90 per barrel, triggering a global risk-off sentiment.
Other factors contributing to the outflows include rupee depreciation beyond the 92-per-dollar level, elevated US Treasury yields drawing capital back to safe-haven assets, and mixed early outlook for Q4 FY26 corporate earnings, particularly margin pressures in the IT and consumption sectors, he added.
