Why Are Foreign Investors Pulling Money Out of India?
Rising tensions in the Middle East have made foreign investors nervous about India. High oil prices and gas shortages are expected to hurt company profits and slow India's overall growth.
How Much Has Been Withdrawn?
Foreign investors have sold stocks every single day in March, pulling out ₹1.12 lakh crore till 25 March. That is roughly ₹6,235 crore pulled out every day.
Could It Break a Record?
If selling continues at the same pace, total withdrawals in March could hit ₹1.25 lakh crore, which would beat the previous record of ₹1.14 lakh crore set in October 2024.
Impact on Markets
Due to this heavy selling, the Nifty 50 has fallen to its lowest level in 11 months, and the Indian rupee has dropped to a record low of ₹94 against the US dollar.
What Happened Earlier in 2026?
Foreign investors started 2026 by selling heavily in January. They briefly bought stocks in February when company earnings improved and an India-US trade deal gave some confidence. But the US-Iran conflict quickly made them cautious again.
Bigger Picture
In 2025, foreign investors had withdrawn ₹1.66 lakh crore from Indian markets. However, domestic investors like mutual funds stepped in and absorbed most of the selling, limiting the damage to the market.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. The figures and data mentioned are based on available sources and may be subject to change. Readers are advised to consult a certified financial advisor before making any investment decisions. The views expressed are not intended to promote or recommend any specific stock, fund, or financial product.
