Indian stock ETFs face a record $220 million outflow due to energy crisis

LootboxPhobia · 2026-04-07T23:47:04+00:00

iShares MSCI India ETF experienced over $220 million in outflows on Monday, marking the largest single-day outflow since April 2025, continuing five weeks of withdrawals with a total of over $2 billion. Market concerns over India's dependence on the Strait of Hormuz for fuel transportation led to asset sell-offs, causing the NSE Nifty 50 Index and the rupee to depreciate.

LootboxPhobia

2026-04-07 23:47:04

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Investing.com — iShares MSCI India ETF, with assets totaling $6.4 billion, saw more than $220 million in outflows on Monday, setting a record for the largest single-day cash outflow since April 2025.

Based on data compiled by Bloomberg, this outflow continues a five-week streak of investor withdrawals, with total outflows now exceeding $2 billion.

Over the past month, Indian assets have been under selloff pressure, driven by concerns in the market about the country’s reliance on transporting fuel through the Strait of Hormuz. About 90% of India’s crude oil and nearly 50% of liquefied petroleum gas are imported. Around half of the crude oil and more than three-quarters of LPG must be shipped via the Strait of Hormuz, while Iran has effectively blocked the strait.

The NSE Nifty 50 index fell by more than 11% in March, bringing the gauge to levels near those seen during market turbulence following the introduction of U.S. tariffs about a year earlier. Over the same period, the rupee has depreciated by more than 4% against the U.S. dollar.

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