FPIs Pull Out Rs 21,000 Cr Amid West Asia Conflict, Global Risk Soars

• Foreign Portfolio Investors (FPIs) withdrew Rs 21,000 crore (USD 2.3 billion) from Indian equities in the last four trading sessions (March 2-6).
• The significant outflow is primarily attributed to escalating geopolitical tensions in West Asia, including a US/Israel attack on Iran.
• Fears of Strait of Hormuz disruptions pushed Brent crude above USD 90, triggering global risk-off sentiment and rupee depreciation.
• Other contributing factors include elevated US Treasury yields and mixed Q4 FY26 corporate earnings outlook, particularly in IT and consumption sectors.
• Experts predict FPIs will remain net sellers until geopolitical clarity and crude price moderation, despite support from DIIs and SIPs.