FPI Selling Resumes: Financials, Autos Hit Hardest Amid Global Uncertainty

• Foreign portfolio investors (FPIs) resumed selling in Indian equities in March, offloading $5.7 billion in the first half.
• Financial services bore the brunt, accounting for nearly 60% of outflows ($3.4 billion), followed by automobiles ($520 million).
• The selling is attributed to global uncertainty, a weakening rupee, and escalating US-Iran geopolitical tensions driving up crude oil prices.
• FPIs remain net sellers for 13 consecutive sessions, with total March outflows exceeding $7 billion, nearing record levels.
• Capital goods, metals, and mining saw inflows, indicating a rotation into cyclical and commodity-linked sectors.