FPIs Close March With Highest-Ever Outflows, Net Selling Crosses Rs 1.18 Lakh Crore

Foreign portfolio investors (FPIs) ended March as heavy net sellers, with total outflows crossing Rs 1.18 lakh crore, marking the highest monthly selling ever by overseas investors in Indian equities.

According to NSDL data, FPIs have sold equities worth Rs 1,17,775 crore so far in March, surpassing previous high outflow months such as October 2024 (Rs 94,017 crore), January 2025 (Rs 78,027 crore), March 2020 (Rs 61,973 crore), and June 2022 (Rs 50,203 crore).

The latest bout of selling comes amid rising global uncertainty and escalating tensions in the Middle East, which has led to risk aversion among global investors and triggered capital outflows from emerging markets, including India.

Foreign investors remained net sellers for the 21st consecutive trading session on Monday, selling shares worth Rs 11,163 crore as benchmark indices Sensex and Nifty declined. In contrast, domestic institutional investors (DIIs) continued to support the market, remaining net buyers for the 23rd consecutive session with purchases worth Rs 14,895 crore.

Last week alone, FPIs offloaded equities worth Rs 24,596 crore, while DIIs bought shares worth Rs 26,897 crore, helping cushion the market from sharper declines.

ALSO READ: Nifty Settles Below 22,350 Amid F&O Expiry, Sensex Falls Over 1,600 Points

Looking at the monthly trend, FPIs sold equities worth Rs 35,962 crore in January. However, in February, foreign investors briefly turned net buyers, purchasing equities worth Rs 22,615 crore amid improving global risk sentiment. With the ongoing geopolitical crisis, FPIs have once again turned aggressive sellers in March.

So far in 2026, FPIs have net sold Indian equities worth Rs 1.31 lakh crore, indicating sustained pressure from foreign outflows this year.

Meanwhile, domestic institutional investors have increased their presence in the market. In the three-month period ended December 31, 2025, DIIs held about 24.8% stake in Nifty 50 companies, while FPI ownership declined to 24.3%, reflecting a gradual shift in institutional ownership trends in the Indian equity market.

Market Recap

Indian equity benchmarks ended lower, extending losses for a second straight session. The Nifty 50 fell 2.1% to close below 22,350 on Monday, while the Sensex dropped more than 1,600 points to settle below 72,000. For March, Sensex and Nifty each slumped 11%, making it their worst March since the Covid period. For the financial year ended March 2026, the Nifty declined more than 5%, while the Sensex fell 7%.

In the currency market, the Indian rupee witnessed its worst fiscal in 14 years after the local currency depreciated 9.9% since April 2025.

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.