IndianStocks News & Analysis

Foreign Investors Withdraw $12 Billion from Indian Stocks Amid Iran Conflict

Foreign investors are projected to withdraw a record $12 billion from Indian equities in March 2026, driven by disruptions in oil and gas supplies due to the Iran war. This withdrawal surpasses the previous record of 940 billion rupees in October 2024. The HSBC flash Purchasing Managers' Index indicates that India's private-sector activity has declined to its weakest level since October 2022. An increase in energy costs may lead to an outflow of $40 billion to $50 billion, which could reduce India's GDP growth from 7.2% to 6.5%. India’s Finance Minister announced a reduction in special excise on petrol and diesel by 10 rupees per litre, while the rise in energy bills could widen the current account and fiscal deficits.