Rs 1.11 lakh cr offloaded by FIIs: Why March 2026 was the worst month for Indian market

Foreign institutional investors (FIIs) logged their worst month ever in March 2026, offloading Rs 1.11 lakh crore worth of equities. This eclipses the earlier figure of Rs 94,000 crore withdrawal in October 2024, the highest ever in a month. 

The biggest trigger behind the sell-off was the US-Israel and Iran war, which kept the global investor sentiment toward risk-off approach. 

Interestingly, FIIs offloaded equities in each trading session of March 2026. On the other hand, Domestic Institutional Investors (DIIs) poured in Rs 1.28 lakh crore last month, providing cushion to the equity market affected by a big selloff and higher volatility. 

On the last trading day of FY26, DIIs bought shares worth Rs 14,895 crore, the strongest domestic buying in a single session in over 1.5 years. 

In the same session, foreign investors (FIIs/FPIs) sold equities worth Rs 11,163 crore in the Indian market.