Foreign investors withdrew ₹ 52,704 crore from the Indian market in 15 days: Reason – Due to Iran war, crude oil crossed the level of 100 dollars and rupee 92.

In February, FPIs had invested Rs 22,615 crore in the market, which was the highest level in the last 17 months.

Selling of Foreign Portfolio Investments (FPIs) continues in the Indian stock market. In the first two weeks of March, foreign investors have withdrawn Rs 52,704 crore from the domestic equity market. This selling has happened at a time when tension is increasing in the Middle East and crude oil has crossed $ 100 per barrel.

Earlier in the month of February, FPIs had invested Rs 22,615 crore in the market, which was the highest level in the last 17 months. But since the beginning of March, foreign investors have been net sellers on every trading day.

Crude oil and rupee spoiled the sentiment

Market experts believe that there are many global and domestic reasons behind this heavy selling. According to Wakarjaved Khan, Senior Fundamental Analyst of Angel One, Brent crude has gone above $ 100 per barrel due to increasing tension in West Asia and fear of supply impact in the Hormuz Route. Due to this, investors have started withdrawing money from risky assets and investing it in safe options. Apart from this, the Indian rupee crossing the level of 92 against the dollar and the increase in American bond yields have also created pressure.

Investors are investing money in China’s market instead of India.

VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said that in the last 18 months the Indian market has given lower returns compared to developed and other emerging markets. Because of this, the inclination of foreign investors towards India has decreased. According to him, South Korea, Taiwan and China look more attractive than India at this time, because valuations are cheaper there after the recent decline and corporate earnings prospects look better.

Highest selling took place in IT-FMCG sector in the year 2025

If we look at sector-wise so far in the year 2025, the IT sector has been hit the most.

IT Sector: About Rs 74,700 crore were withdrawn. The reason for this is the decline in revenue growth and decline in global tech expenses.

FMCG Sector: There was an outflow of Rs 36,800 crore due to decline in urban consumption and margin pressure.

Power and Healthcare: Sales worth Rs 24,000 to 26,000 crore were made from these sectors.

Increased investment in sectors like oil and gas-metals

However, investors have increased their exposure to sectors like Telecom, Oil & Gas, Metals and Chemicals, indicating that money is now shifting towards domestic value and commodity stocks.

Opportunity for domestic investors due to fall in banking shares

Selling of financial and banking shares by foreign investors has brought down the valuation of these sectors significantly. Experts say that where foreign investors are leaving. At the same time, these shares are now available at attractive prices for domestic investors. The market sentiment still remains cautious for the second half of March.

The pace of selling may slow down in the fourth quarter

Experts say that if the fourth quarter (Q4) results are better than expected, especially in the banking and consumption sectors, then the pace of selling may slow down. But if geopolitical tensions increase further or oil prices go higher, the market will remain under pressure.

What is Foreign Portfolio Investment (FPI)?

Foreign portfolio investment (FPI) is an investment in which foreign citizens or companies invest money in the stock market, bonds or other financial assets of another country. Their movements decide the movement of the stock market.

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