Foreign Institutional Investors Suffer Net Outflow of Rs 9,366 Crore from Indian Equities, Domestic Institutional Investors Post Net Inflow of Rs 12,593 Crore

Market Update: Indian Equities Witness Sharp Correction Amid Global Volatility

Key Figures:

• Foreign investors (FIIs/FPIs) net sold Rs 9,366 crore worth of Indian equities on March 16, 2026.
• Domestic institutional investors (DIIs) net bought shares worth Rs 12,593 crore.
• For the year so far, FIIs have been net sellers of shares worth Rs 1.16 lakh crore, while DIIs have net bought shares worth Rs 1.81 lakh crore.

Market Performance:

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Indian equities have experienced a sharp correction in 2026, driven by heightened global volatility and uncertainties. The Nifty50 has declined by over 11% since the beginning of the year, while the Nifty Mid Cap and Small Cap indices have fallen by around 10% each. In March so far, the Nifty has fallen by 8%, the worst monthly fall since the pandemic in March 2020.

The Indian rupee has reached a fresh record low of Rs 92.45 against the US dollar, amid a surge in energy prices above $100 per barrel. This has raised concerns over a widening current account deficit for India, which imports nearly 88% of its crude oil.

Sectoral Performance:

Rate-sensitive and cyclical sectors such as banking, financial services, and automobiles witnessed notable selling pressure. The Nifty 50 declined by 2% during the session to close at 23,151, down 488 points, while broader markets also weakened with the Midcap 100 and Smallcap 100 indices declining over 2% each.

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Outlook:

Market direction is likely to remain sensitive to developments in the West Asia conflict, movements in crude oil prices, and the trend in foreign fund flows. Sustained foreign outflows and elevated oil prices could keep sentiment cautious, while any signs of easing geopolitical tensions may provide relief to markets.