Foreign investors pulled out over 60,000 crore from financial services in March, marking the highest monthly withdrawal since 2012.

Foreign investors pulled out over 60,000 crore from financial services in March, marking the highest monthly withdrawal since 2012. The sector bore the brunt of broader FPI sell-offs, accounting for 43 percent of total outflows across 21 sectors during the second half of March alone. Bank Nifty plummeted nearly 17 percent amid global market turmoil and geopolitical tensions. Corporate governance concerns at HDFC Bank, triggered by chairman Atanu Chakraborty's unexpected resignation citing ethical differences, intensified the financial sector's weakness. Automobiles and construction also faced significant outflows of 7,691 crore and 6,179 crore respectively. Analysts attribute the exodus to valuation concerns following the 2025 rally, geopolitical uncertainty, and a macro-level risk-off sentiment across emerging markets rather than sectoral rotation.