In March 2026, Foreign Portfolio Investors (FPIs) aggressively sold Indian equities, offloading stocks worth ₹1,17,775 crore. The financial services sector was the hardest hit, with outflows totaling ₹60,655 crore, primarily due to escalating geopolitical tensions from the US-Iran conflict and a weakening rupee amid rising crude oil prices. The Nifty Bank index experienced a steep decline of over 17%, with HDFC Bank's share price dropping 17.6% following the unexpected departure of its part-time Chairman, Atanu Chakraborty. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, highlighted that despite the sell-off, the banking sector remains fundamentally strong, with healthy credit growth and asset quality. Other sectors also faced significant outflows, including automobiles at ₹12,498 crore and construction at ₹9,154 crore. The capital goods sector was the only one to attract FPI inflows, amounting to ₹3,148 crore.