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Renewed flows should start from April series

ICICIdirect Research 13 Mar 2026 DISCLAIMER

FIIs have turned aggressive sellers so far in the March amid escalating geopolitical issues and sold ~40k crores in just 7 trading session (Nifty down by 6%) putting extreme pressure on equities. The rise in volatility clearly suggests frightened behaviour by foreign investors as they have sold stocks from the outperforming sectors as well.
Banking space saw relatively higher selling and both private as well as PSU banks have seen sharp declines whereas Bank Nifty declined by ~9% while Auto index declined by more than 10% during the month so far.
In terms of outperformance, stocks from Power, Metals and Oil & Gas sectors have shown significant resilience where stocks like NTPC and Power Grid have given positive returns during the same time frame. Also, stocks from Industrials and Pharma have been largely immune to the ongoing pressure in the markets.
Going ahead, on an immediate basis a reversal seems difficult considering escalating geopolitical scenario in middle east. Also, tax harvesting may keep some pressure at higher levels. However, we expect thaw in ongoing geopolitical issues as well renewed buying from FIIs from April month which should provide significant positive moves in equities.  

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