FII Outflows of ₹52,704 Cr Hit Indian Markets Amid Global Tensions

# FII Outflows of ₹52,704 Cr Hit Indian Markets Amid Global Tensions Foreign portfolio investors (FPIs) have unleashed a massive selling spree on Indian equities, dumping ₹52,704 crore worth of shares in the first half of March 2026. This unprecedented outflow represents one of the most significant capital flight episodes from Indian markets in recent years, with Friday recording the largest single-day FPI selloff of the year. The scale of this exodus becomes starker when viewed against historical patterns. March's first 15 days have already witnessed outflows exceeding several full-month figures from previous years, signaling a fundamental shift in foreign investor sentiment toward Indian assets. While domestic institutional investors (DIIs) attempted to cushion the blow with ₹9,977 crore of net purchases on March 13 alone, their intervention has only partially offset the foreign selling pressure. Market Impact: Benchmark Indices Under Severe Pressure The relentless FPI selling has hammered benchmark indices, with the NIFTY 50 declining 4.2% during the March 1-15 period, while the SENSEX shed 4.1%. Market capitalization erosion has been swift and brutal, with investor wealth declining by approximately ₹18.5 lakh crore during this fortnight. Large-cap stalwarts bore the brunt of foreign selling. NSE: RELIANCE witnessed its steepest two-week decline in eight months, falling 6.3% as FPIs reduced their stake by an estimated 1.2%. The stock's price-to-earnings ratio compressed to 24.2x from 25.8x at month-start, creating potential value opportunities for long-term investors. Information technology giants faced dual headwinds from both FPI outflows and global technology sector concerns. NSE: TCS dropped 5.8% during the period, with trading volumes surging 40% above the 30-day average. NSE: INFY fared marginally better with a 4.9% decline, though institutional holding patterns suggest continued pressure. Both stocks now trade below their 50-day moving averages, a te...