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Renewed flows from FIIs may start from the April series

ICICIdirect Research 13 Mar 2026 DISCLAIMER

Foreign institutional investors have turned aggressive sellers in March amid rising geopolitical tensions. They have sold nearly ₹40,000 crore in just 7 trading sessions, during which the Nifty has declined about 6%, reflecting heightened volatility and risk aversion.

Banking stocks have seen the sharpest selling pressure. Both private and public sector banks have declined significantly, with the Bank Nifty falling about 9%. The Auto index has also corrected more than 10% during the month so far.

Despite the broad market weakness, some sectors have shown resilience. Power, Metals and Oil and Gas stocks have outperformed, with companies such as NTPC and Power Grid delivering positive returns. Industrials and Pharma stocks have also remained relatively stable.

In the near term, a quick reversal appears unlikely due to ongoing geopolitical tensions in the Middle East. Tax harvesting could also keep markets under pressure at higher levels. However, easing geopolitical concerns along with renewed buying by foreign institutional investors from April could support a recovery in equities.

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