Middle East War Triggers Record Rs 1.1 Lakh Crore FII Withdrawal from Indian Markets

• Foreign Institutional Investors (FIIs) withdrew a record Rs 1.1 lakh crore from Indian equities in March 2026, the highest ever in a single month.
• This unprecedented sell-off, driven by Middle East war uncertainty, surpassed the previous record of Rs 94,000 crore in October 2024.
• The Nifty 50 index declined over 15% in three months, with more than 13% falling since the conflict began on February 28, 2026.
• Weakening rupee, rising crude oil prices, and inflationary concerns contributed to foreign investors' cautious approach.
• Domestic Institutional Investors (DIIs) provided support with Rs 1.28 lakh crore in buying, partially offsetting FII outflows.