Record Foreign Sell-Off in March Shakes Indian Markets, West Asia Tensions & Global Risks Trigger Massive ₹1.14 Lakh Crore Outflow
· Free Press Journal
Mumbai: Foreign investors have pulled out a record ₹1.14 lakh crore from Indian stock markets in March, making it the biggest monthly outflow ever. According to data from National Securities Depository Limited, this is even higher than the previous record of ₹94,017 crore seen in October 2024. With one trading session still left, the final number could go even higher.
Continuous Selling Pressure
Visit amunra-opinie.pl for more information.
Foreign portfolio investors (FPIs) have been selling shares लगातार throughout the month. Till March 27 alone, they sold equities worth ₹1.13 lakh crore in the cash market.
This comes after a strong February, when FPIs had invested ₹22,615 crore — the highest inflow in the last 17 months. The sharp reversal clearly shows changing global sentiment.
FPIs Pull Out Over $11 Billion In March, Indian Markets See Record Outflows As Yields Hit 4.4% & Rupee Nears 94.82Why Are FPIs Selling?
Experts say multiple global and domestic factors are behind this heavy selling.
V K Vijayakumar from Geojit Financial Services explained that rising tensions in West Asia, weak global markets, and falling value of the rupee are major reasons. There are also concerns that higher crude oil prices could hurt India’s economic growth and company earnings.
Another expert, Himanshu Srivastava from Morningstar Investment Research India, said rising US bond yields and tight global liquidity are also attracting investors towards safer assets like bonds in developed markets.
FPIs Pump Rs 22,615 Crore Into Indian Equities In February, Highest Monthly Inflow In 17 Months After Heavy SellingGlobal Trend, Not Just India
The selling is not limited to India. Foreign investors are also pulling money out of other emerging markets like Taiwan and South Korea. This shows a broader “risk-off” trend, where investors prefer safer investments during uncertain times.
Market Outlook
Even though Indian stock valuations have corrected recently, they are still seen as relatively high compared to other emerging markets. This is leading to profit booking by foreign investors.
Overall, global uncertainty, geopolitical tensions, and rising oil prices are likely to keep markets volatile in the near term.