FII Outflows Cross ₹1 Lakh Crore In 16 Sessions Amid Global Volatility

Foreign institutional investors (FIIs) sold equities worth ₹1,00,040 crore in India’s secondary market between February 26 and March 20, marking one of the sharpest outflow phases in recent months, according to exchange data.

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The process took place in 16 trading sessions, which equals an average of nearly ₹1,000 crore per hour based on a typical six-hour trading day. So far in 2026, FIIs have been net sellers in 33 out of 50 trading sessions.

Sustained Selling Trend In Recent Years

The trend in FII outflows has persisted in recent years. In 2025, FIIs sold ₹2.4 lakh crore worth of equities in 156 out of 241 trading sessions. At an average six-hour trading day, this equals an average of ₹166 crore per hour. In 2024, FII outflows totaled ₹1.29 lakh crore, with 134 out of 238 sessions witnessing FII selling, averaging around ₹90 crore per hour.

Decline In FII Holdings

FII assets under custody declined to ₹65.63 lakh crore as of March 15, compared with ₹71.77 lakh crore a month earlier and ₹74.27 lakh crore at the end of December 2025, as per exchange data. Their share in the Indian equity market also fell to 15.3%, down from 15.5% a month earlier and 16.3% a year ago.

Domestic Investors Provide Support

Domestic institutional investors (DIIs) invested ₹1,16,586 crore during the same period, offsetting a part of the foreign outflows. This translates to an average inflow of nearly ₹1,200 crore per hour, supported by mutual fund systematic investment plans, insurance inflows, and pension allocations, according to market data.

Market Performance During Outflows

Benchmark indices declined during this period. The Sensex and Nifty fell over 10%, while broader markets also weakened, with the BSE MidCap 150 index declining about 7.5% and the BSE SmallCap 250 index falling around 7.8%.

Key Drivers Behind Outflows

The continuous selling pressure has been coupled with the rise in prices of crude oil and geopolitical factors due to the rise in tensions in the Middle East region. The prices of Brent crude oil have been above $100 per barrel in this period, as reported by Reuters.

Another factor that may have influenced the market is the value of currency; the value of the rupee has been declining in this period. India is a country that is a net importer of crude oil; 85-90% of total consumption is imported.

Although domestic flows continued to support the market, the amount of selling by foreigners was substantial, putting pressure on the equity markets as FII's continued to be net sellers over most days since late February.