Foreign portfolio investors (FPIs) extended their heavy sell-off in Indian equities this week, pulling out a net Rs 23,801 crore, as global uncertainties and rising crude oil prices continued to dampen investor sentiment.Data from the National Securities Depository Limited showed that March had already seen substantial outflows, with FPIs offloading equities worth Rs 1,17,775 crore, the highest monthly selling recorded so far this year.The persistent exodus has been largely attributed to the ongoing conflict in the Middle East, which shows no clear signs of easing. A sharp rise in crude oil prices, coupled with the weakening of the rupee, has further intensified pressure on domestic markets, prompting foreign investors to scale back their exposure.Market experts pointed out that a combination of geopolitical tensions, elevated energy prices and currency depreciation has created a challenging environment for foreign investments.VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said March witnessed unprecedented selling by FPIs.“March witnessed massive selling by FPIs. This is the biggest ever monthly selling by FPIs. Continuation of the war, crude again spiking to above USD 100 level, the steady decline in the rupee and appreciation of the dollar triggered this record selling by FPIs,” he said.He added that the weakening rupee has been a key factor accelerating the outflows.“Rupee depreciated by about 4% since the war began and fears of further depreciation has added to the weakness of the rupee, which, in turn, is triggering further selling by FPIs,” Vijayakumar noted.Crude oil prices rising above the $100 per barrel mark have also heightened concerns around inflation and India’s import bill, given its reliance on imported energy. This has added to the strain on the rupee and weighed on overall market sentiment.Despite the sustained selling, experts believe that the market correction has brought valuations to more reasonable levels.“Sustained selling by the FPIs have made Indian market valuations fair and in some segments attractive. But FPI inflows can happen only when there is de-escalation on the war front leading to decline in crude,” Vijayakumar added.The ongoing trend suggests that foreign investor activity in Indian markets is currently being shaped by global developments, particularly geopolitical tensions and movements in energy prices, with any reversal in flows likely dependent on easing of these risks.