Why did foreign investors sell Indian equities worth ₹1 lakh crore?

Foreign Portfolio Investors (FPIs) sold Indian equities worth over ₹1 lakh crore in just 16 sessions between February 25 and March 20. The selloff was mainly driven by the Middle East conflict, which began on February 28. A 60% surge in oil prices due to Strait of Hormuz disruptions and the rupee hitting record low of nearly 94 also contributed.