FII selling is gaining traction. Foreign institutional investors net sold Rs 9,365.52 crore on March 16, following a staggering Rs 10,716.64 crore on March 13. As a result, their March net sales have exceeded Rs 66,000 crore. They have already sold more than Rs 1 lakh crore so far in 2026. What is it signifying?
The majority pointed out that India is unrelated to two of the most significant triggers. FII sentiment has been affected by the ongoing intensification of the Middle East crisis and the dollar’s strength.
West Asian conflict continues:
The Hormuz crisis is becoming more and more intense. Following some ships passing through the Strait of Hormuz, US President Donald Trump reiterated his appeal for assistance in clearing it. During the Iran War, Trump urged international efforts to lower consumer energy prices.
The ongoing violence and war escalation throughout West Asia are having swift geopolitical and economic repercussions. International institutional investors are becoming uneasy about this. They are liquidating assets as a consequence.
Dollar drama in focus:
The second main character in this act is the dollar. The Dollar Index has been near its April–May levels over the last few sessions. The Dollar Index is perilously near to the 100 levels, despite a small softening. The dollar has increased by up to 3% during the past month.
Because of this, the rupee has remained weak. Limiting factors also included rising crude oil costs and foreign money withdrawals brought on by geopolitical unpredictability. The rupee has been below the crucial 92/$ levels for more than three sessions in a row due to all of these factors.
