Since the outbreak of the Iran-US war in early March 2023, foreign investors have been selling off Indian equities at an alarming rate, totaling ₹1.6 lakh crore (approximately $192 billion USD) over 27 consecutive sessions. This mass exit has significantly impacted the Indian stock market, with the Sensex and Nifty indices experiencing a decline of more than 11% in March. The situation was exacerbated by rising oil prices due to the closure of the Strait of Hormuz, a critical oil shipping route. However, the beginning of April brought new optimism as ceasefire talks emerged, leading to a 6% recovery in the indices. Despite this, foreign investors continued to sell, netting over ₹39,640 crore in the first week of April alone. On April 10, a small respite occurred when foreign investors net bought ₹672 crore worth of shares, breaking a long selling streak. Analysts highlight that the attractiveness of markets in South Korea and Taiwan, which are expected to deliver superior earnings growth compared to India, is influencing foreign investment decisions. The future of foreign investment in India will largely depend on geopolitical stability in West Asia and fluctuations in crude oil prices, as prolonged conflict could adversely affect India's economic outlook.