In March 2023, foreign portfolio investors (FPIs) withdrew more than ₹60,000 crore from India's financial services sector, the largest outflow since 2012. This sell-off saw investors dumping shares worth ₹28,824 crore from March 16-31, following an earlier withdrawal of ₹31,831 crore in the first half of the month. The financial sector's outflows accounted for 43% of the total ₹67,081 crore pulled out across 21 sectors, marking the highest fortnightly selling since October 2024. Analysts attribute the sell-off to valuation concerns after a market rally in 2025 and governance issues at HDFC Bank, particularly following the unexpected resignation of its chairman, Atanu Chakraborty. This governance cloud has led to increased caution among foreign investors. The broader market was also affected, with the Bank Nifty index falling nearly 17% and the Nifty index dropping over 11% due to the global market sell-off driven by geopolitical tensions in West Asia. Other sectors, including automobiles and construction, also experienced significant outflows, indicating a macro exit from India rather than a sector-specific rotation.