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Foreign investors are on track to pull a record $12 billion from Indian equities this March as the Iran war disrupts oil and gas supplies, squeezing the economy and stoking fears of a growth slowdown.
With just two trading days left in the month, foreign portfolio investors have already pulled out 1.12 trillion rupees ($12.1 billion) — likely marking the worst monthly selloff, surpassing the previous record of 940 billion rupees in October 2024, according to data from depository firm NSDL.
“Large FII outflows in March 2026 are linked to the conflict in the Middle East,” said Peeyush Mittal, portfolio manager at Matthews Asia — FII refers to foreign institutional investors. “The longer the conflict persists, the deeper the negative impact on India’s economic growth,” he added in an email to CNBC.
’s flash Purchasing Managers’ Index released Tuesday showed India’s private‑sector activity in March slowing to its weakest level since October 2022, as softer domestic demand outweighed the strongest rise in international orders.
