Foreign institutional investors (FIIs) have exhibited a notable trend of selling Indian equities, recording net sales on nearly 150 of the last 240 trading days. This behavior indicates a broader reassessment of India by global investors, influenced by rising oil prices, a depreciating rupee, and increasing US bond yields. The peak of this selling occurred on April 2, 2026, with a staggering outflow of ₹19,837 crore, followed by significant sales in March. Since the escalation of tensions in West Asia, FIIs have withdrawn over ₹1 lakh crore from Indian markets, contributing to a 9% correction in the Nifty index. Despite this, domestic institutional investors have stepped in to support the market, absorbing much of the foreign selling and preventing more severe corrections. Analysts suggest that while FIIs are recalibrating their risk assessments, they are not abandoning India entirely. Future institutional flows will likely hinge on global economic developments rather than local events, emphasizing the need for stabilization in oil prices and the rupee.