Foreign capital outflows from the Indian stock market have accelerated, breaking the annual record of last year in the first four months.

In the first four months of 2026, foreign investors withdrew over $20 billion from the Indian stock market, surpassing the previous annual record for capital outflow. The surge in oil prices due to the conflict in Iran has shaken confidence in this third largest economy in Asia and one of the largest oil importers. Data from the National Securities Depository Limited of India shows that $19 billion flowed out after the outbreak of the Iran conflict. Last year, the outflow of funds was $18.9 billion. Analysts point out that 90% of India's energy needs are dependent on imports, with a high reliance on Middle Eastern supplies, making it one of the countries most severely affected by energy shocks.