New Delhi, April 2 -- Foreign portfolio investors (FPIs) pulled out Rs.1.17 lakh crore just in March 2026, the highest ever outflow in a month on the back of the ongoing US-Iran war, which started on February 28. Meanwhile, in FY26, FPIs sold Indian equities worth Rs.1.8 lakh crore, marking the highest annual outflow ever recorded in a financial year.

The heavy overseas selling in the last 1 month as well as in FY26, came during one of the most volatile periods for Indian markets in recent years, as the country also witnessed its worst rupee slide in 14 years. In just about four weeks, the rupee lost 4%, adding to concerns over imported inflation, current account pressures and the broader macro outlook for India.

For foreign investors, ...