New Delhi, April 3 -- After withdrawing more than Rs.1 lakh crore in March, overseas investors have extended their selling spree into early April, as tensions in West Asia continue to simmer, keeping risk aversion intact. Higher yields have improved the relative attractiveness of dollar-denominated assets, prompting capital to move away from emerging markets such as India.

In the first two trading sessions of April, FPIs have sold a cumulative Rs.19,837 crore worth of Indian stocks, extending their selling streak to the 23rd straight session, taking the combined outflows to Rs.1.37 lakh crore, according to NSDL data.

In March alone, they withdrew Rs.1.17 lakh crore, marking the highest monthly FPI selling on record, implying an average ...