FPIs dump Rs 31,831 crore in financials as total outflows hit Rs 52,703 crore in a fortnight

Significant FPI outflows are a major negative for market sentiment and can lead to downward pressure on stock prices, especially in the financial sector which is a large component of indices.

• •Foreign portfolio investors pulled out Rs 52,703 crore from Indian equities in the first half of March.
• •Financials bore the brunt with Rs 31,831 crore in outflows.
• •Broad-based selling, rising crude oil prices, and geopolitical tensions weighed on markets.
• •Select inflows into capital goods and metals indicate continued interest in domestic capex and infrastructure themes.
• •Risk flag: Continued FPI selling