Foreign Investors Pull Out Over ₹52,000 Crore from Indian Equities in March

Foreign portfolio investors have sharply reduced their exposure to Indian equities in March, selling shares worth more than ₹52,000 crore in the first half of the month. The scale of the outflow marks one of the most significant phases of foreign selling so far this year and has weighed on overall market sentiment.

Data from market exchanges show that a large portion of the selling occurred during a few volatile trading sessions, with a single day witnessing outflows of over ₹10,000 crore. Analysts say the withdrawals reflect a broader shift in global investment flows as investors reassess risk in emerging markets.

The selling by overseas investors comes amid heightened global uncertainty and cautious risk appetite. Rising geopolitical tensions and fluctuations in commodity prices have prompted global funds to move capital towards safer assets, resulting in reduced allocations to emerging markets including India.

Despite the recent outflows, market participants note that domestic institutional investors have continued to provide support to the market through consistent buying. Analysts say the near term direction of Indian equities will depend on global cues, foreign fund flows and corporate earnings momentum.