FPIs sell record ₹1.1 lakh crore in Indian equities as markets remain fragile

This selling is the most aggressive FIIs have ever made in a month and surpasses the ₹94,017 crore sold in October 2024, which was seen as the beginning of the correction in the market. The relentless stock dumping comes at a time when markets have got a breather after signs of de-escalation and oil prices cooled for two days of the week. The selling is expected to show up in the benchmark indices on Friday, as markets remained closed on Thursday on the occasion of Ram Navami.

Apart from equities, FIIs also sold ₹1,398 crore in mutual funds. A large share of the selling was, however, in the debt category where they sold ₹335 crore. Equity MF sales were moderate at ₹142 crore. This has made it a broad sale, as FIIs had recently begun preferring passive investments in the Indian market.

Across all modes of investments, FPIs sold ₹1,23,688 crore in March and ₹1,15,124 crore between January and March 2026.

The March data is a complete reversal from the February trend when the foreign funds bought ₹22,615 crore in Indian stocks after which experts had signalled a sign of slow take-off citing better macroeconomic data.

Between March 1 and 15, the duration for which sector-wise data is available, FIIs sold ₹31,831 crore of stocks in financial services. The automobile sector came a close second wherein foreign funds sold over ₹4,807 crore worth of stocks.

Amid a broad sale, FIIs had bought stocks worth ₹3,897 crore in the capital goods sector and less than ₹1,000 crore worth shares in chemicals, consumer services and metals and mining. To be sure, the numbers might have changed in the past 15 days in the current month.

“Investors largely agreed on the improving macro and earnings outlook, but the main pushback was on a lack of compelling narrative or immediate reasons to buy. The Middle East conflict and India’s high dependence on oil imports are likely to dent foreign investors’ sentiment, in our view,” BNP Paribas said in its March Strategy report.

This selling is the most aggressive FIIs made in a month and surpasses the ₹94,017 crore sold in October 2024.