admin 
New Delhi, April 17, 2026:
A sharp global energy shock triggered a widespread selloff across financial markets in March 2026. However, India managed to hold its ground despite record foreign investor outflows, according to PL Asset Management.
Global Markets Witness Sharp Correction
Rising crude oil prices caused the major disruption. Prices surged by 52% after disturbances in the Strait of Hormuz, which pushed global inflation higher.
As a result, central banks continued their higher-for-longer interest rate policy, leading to a risk-off environment.
Consequently, global markets saw heavy declines:
- KOSPI fell over 19%
- Nikkei 225 dropped more than 13%
Moreover, the correction impacted all major asset classes, including equities, bonds, currencies, and even traditional safe-haven assets.
Indian Markets Show Relative Strength
Despite global pressure, India displayed resilience. The Nifty 50 declined by 11.3% in March, reflecting a broad-based correction rather than a sector-specific fall.
Key sectors such as:
- PSU banks
- Realty
- Automobiles
faced significant selling pressure. Meanwhile, defensive sectors like pharmaceuticals and FMCG failed to provide strong support during this phase.
Record FII Outflows Offset by Domestic Investors
Foreign Institutional Investors (FIIs) pulled out approximately ₹1.22 lakh crore from Indian markets. However, Domestic Institutional Investors (DIIs) counterbalanced this trend by investing around ₹1.43 lakh crore.
Therefore, domestic liquidity played a crucial role in stabilizing the market.
Additionally, India’s macroeconomic fundamentals remained strong:
- Industrial production grew by 5.2%
- Inflation stayed within the target range of the Reserve Bank of India
Market Nearing Inflection Point
Siddharth Vora stated that the correction was liquidity-driven and macro-led, not a fundamental breakdown.
He also emphasized that:
- Market indicators are in oversold territory
- Similar past corrections have delivered strong returns
- Early signs of stabilization are emerging
For instance, crude oil momentum has started moderating, while the US dollar and bond yields appear to be nearing their peak.
Valuation Reset Creates Investment Opportunities
PL Asset Management highlighted that valuations have become more attractive. Its internal “Value-Meter” index dropped to 0.18, the lowest level since the 2020 pandemic.
Historically, such levels have signaled strong medium-term recovery potential.
Outlook: Cautious Optimism for Investors
Although short-term risks remain, the firm advises investors to stay cautious yet proactive.
- Focus on capital protection
- Gradually increase exposure to quality stocks
- Identify opportunities created by recent market corrections
Overall, while global uncertainties continue, India’s strong domestic fundamentals and institutional support position it well for recovery.
About The Author
