New Delhi, March 26 -- The escalating tensions in West Asia have altered the stance of overseas investors towards Asia's third-largest economy, as they sharply trimmed their holdings in March amid concerns that elevated crude oil prices and gas shortages could hurt corporate earnings and India's growth outlook.

FPIs have remained net sellers in all trading sessions in March, pulling out Rs.1.12 lakh crore through 25 March, according to data from the National Securities Depository Ltd (NSDL). This implies an average daily outflow of around Rs.6,235 crore.

If the selling continues at a similar pace over the remaining two trading sessions, total FPI outflows for March could reach approximately Rs.1.25 lakh crore, surpassing the previous re...