Investors have pulled $220 million from BlackRock’s iShares MSCI India ETF on Monday, marking the biggest single‑day outflow since April 2025. The fund, worth $6.4 billion, is now down more than $2 billion in just five weeks.

The sell‑off stems from mounting worry that the Iran‑led blockade of the Strait of Hormuz will choke India’s fuel imports. With 90% of crude oil and nearly half of LPG routed through the strait, even a temporary shut‑down could depress growth and push the NSE Nifty 50 lower.

Market data show the Nifty fell over 11% in March, while the rupee weakened 4% against the dollar. UBS Global Wealth downgraded Indian equities to neutral, citing high valuations and energy‑price sensitivity as triggers.

For investors, the outflows underline the vulnerability of emerging‑market funds to geopolitical shocks and the need for portfolio diversification beyond oil‑heavy exposure.