FPIs pull out ₹20,818 crore from Indian markets in four trading days

Foreign portfolio investors (FPIs) remained net sellers in Indian markets for the week ending March 6, 2026, pulling out a net ₹20,818.71 crore (approximately $2.29 billion) across equity, debt, and other instruments over four trading sessions — February 2 through March 6 — according to data from the National Securities Depository Limited (NSDL). The selling was heaviest on March 5, when FPIs recorded a net outflow of ₹11,141.74 crore in a single session, driven almost entirely by equity sales. Equity alone accounted for a net outflow of ₹9,113.42 crore that day on the stock exchange segment. March 2 saw the second-largest outflow at ₹4,593.97 crore, followed by March 6 at ₹3,162.11 crore, and March 4 at ₹1,920.89 crore. Equity markets bore the brunt of FPI selling across the week. Net outflows from equity over the four sessions totalled ₹21,000 crore. March 5 alone recorded gross equity purchases of ₹20,256.26 crore against gross sales of ₹29,369.68 crore — a gap of over ₹9,000 crore. Debt markets presented a mixed picture. The Debt-FAR (Fully Accessible Route) segment was a relative bright spot on March 2, recording a net inflow of ₹1,959.56 crore. However, the same segment turned negative on March 5 (net outflow of ₹1,068.20 crore) and March 6 (net outflow of ₹172.53 crore). The Debt-VRR segment ended the week as the only consistent positive contributor, recording a net inflow of ₹619.01 crore on March 6. The rupee weakened over the period, with the dollar-rupee conversion rate moving from ₹90.95 on March 2 to ₹91.63 on March 6, reflecting the pressure from sustained capital outflows. ...”The net FPI buying witnessed in February has reversed due to the Middle East conflict. In the first four trading days of March, FPIs sold equity for ₹21,829 crore. Uncertainty surrounding the Middle East conflict, steady decline in the market, the vulnerability of the Indian economy to sharp crude spike and the sharp depreciation of the rupee contributed to the sustained FII selling in the cash market,”... said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited. ...”FPIs are unlikely to return to the market as buyers until there is some clarity on the outcome of the conflict and decline in the price of crude. Brent crude trading above $90 is bad news for the Indian economy and markets,”... he added. The broader market reflected the strain. The Nifty 50 fell 2.89 per cent over the week to close at 24,450.45, while the BSE Sensex shed 2.91 per cent to settle at 78,918. ”Technically, the index has firmly breached the ascending trendline near the 24,700 level and is trading significantly below its 200-day EMA, signaling a deepening bearish trend,”... said Dr. Ravi Singh, Chief Research Officer, Master Capital Services Ltd. ...”The outflows were largely driven by a deterioration in global risk sentiment amid escalating geopolitical tensions in the Middle East involving the United States, Israel, and Iran. The conflict raised concerns about potential disruptions to global oil supplies, leading to a sharp rise in crude oil prices — an adverse development for an oil-import dependent economy like India,”... said Himanshu Srivastava, Principal Manager Research, Morningstar Investment Research India. Domestic institutional investors (DIIs) continued to absorb the selling pressure, investing ₹32,787 crore during the week. Mutual fund SIP inflows also provided a floor to the market. ”The market is now being supported by DII buying and sustained mutual fund SIP inflows. Further correction in the market will make valuations attractive. But strong buying will emerge only when the conflict ends and crude declines,”... said Vijayakumar. In the derivatives segment, FPI open interest in Index Futures stood at 2,28,836 contracts worth ₹37,498.48 crore as of March 6, while Stock Futures open interest remained elevated at 66,68,214 contracts worth ₹4,26,751.71 crore, indicating sustained hedging activity amid the volatile cash market environment. Published on March 7, 2026