In March 2026, sovereign wealth funds in India increased their share of foreign portfolio investments to 6.5%, up from 6.4% in February, despite widespread fears of liquidation due to the ongoing Iran conflict. This stability is notable as foreign portfolio investors (FPIs) sold equities worth ₹1.2 trillion during the same month, marking the first full month after the conflict began. Sovereign wealth funds experienced a decline of 12% in equity holdings, which was less severe than the 13% drop for FPIs overall. The BSE Sensex also fell by 11.5%, reflecting the broader market downturn. Analysts suggest that India's relatively small allocation in global portfolios and its role as a diversifier may have contributed to the reduced liquidation pressures. However, the depreciation of the Indian rupee against the dollar, which fell from 85.58 to 94.65, led to foreign investors losing nearly 10% of their investment value in the past year. The report indicates that while pressures persist, attractive valuations in larger companies may provide a silver lining for potential recovery in foreign investments once the geopolitical situation stabilizes.