Record foreign investor exodus from Indian stocks marks economic turning point. Foreign institutional investors have withdrawn a record $12 billion from Indian equities in March, driven by Middle East conflict disrupting oil supplies. This marks the worst monthly selloff ever, surpassing October 2024's previous record. As the world's third-largest oil importer, India faces mounting pressure from rising energy costs and supply chain disruptions following the Strait of Hormuz closure. Private sector activity has slowed to its weakest level since October 2022, with companies citing geopolitical tensions and inflationary pressures. Analysts warn that sustained oil prices at $85-$95 per barrel could trigger additional outflows of $40-50 billion, potentially reducing India's economic growth from 7.2% to 6.5%.
