Foreign investors pulled out a significant $751.4 million from Indian equities on March 2, ending a strong February inflow. This reversal, driven by escalating Middle East tensions, signals a cautious near-term outlook for foreign fund flows. Despite this, overall FPI selling in FY26 has been less severe than the previous year, indicating a more measured approach to Indian markets.
Short-term rates ease as banks see surge in dollar deposits
Large banks secured significant dollar deposits, easing short-term borrowing costs for smaller institutions. This influx of funds has boosted banking system liquidity considerably in recent