Amid concerns that rising tensions in West Asia, a depreciating rupee, and elevated crude oil prices could impact India’s growth and corporate earnings, Foreign Portfolio Investors (FPIs) have withdrawn Rs 52,704 crore (approximately $5.73 billion) from the domestic stock market so far in March. Prior to this, in February, FPIs had invested Rs 22,615 crore in the Indian equity market—marking the highest inflow in 17 months. According to depository data, FPIs had been net sellers for three consecutive months leading up to this period.

Largest Withdrawal in the Last 5 Months

FPIs had withdrawn funds by selling shares worth Rs 35,962 crore in January, Rs 22,611 crore in December, and Rs 3,765 crore in November. So far in March (up to March 13), FPIs have recorded a net withdrawal of approximately Rs 52,704 crore. Experts attribute the primary reason for these FPI withdrawals to escalating geopolitical tensions in West Asia.