The Iran war, the closure of the Strait of Hormuz, soaring crude prices above $100 per barrel, a sharply weakening rupee and relentless foreign fund outflows have created one of the toughest backdrops for Indian equities in recent years.
The Strait of Hormuz, arguably the world’s most critical artery for crude oil supply, remains disrupted, keeping global markets on edge. Foreign institutional investors have only added to the pressure. FIIs have sold over $22 billion worth of Indian equities so far in 2026, already surpassing last year’s $19 billion outflow and marking the deepest annual exodus in more than two decades.
