FPIs pulled out about USD 17.5 billion from Indian equities in 2025, the highest annual outflow on record in absolute terms. The selling reflected weak earnings momentum, global risk aversion, and better relative opportunities in AI-heavy markets, the report highlighted.
Reflation in the Indian economy, a possible revival in corporate earnings, and the return of foreign portfolio investors are among the positive signs that Indian equities will push higher year-on-year through the New Year - 2026, according to a report by Standard Chartered.
However, the Indian rupee witnessed heightened volatility during the week and appreciated ~1.27% last week after hitting fresh all-time lows of Rs 91.09 against USD on 16th Dec'25, influenced by weak global cues from the US, major central banks policy decisions, ongoing trade negotiations, a
The domestic equity markets opened lower on Monday amid cautious global cues, continued foreign investor selling and uncertainty around key global central bank actions, as investors remained in a wait-and-watch mode for positive triggers such as a favourable US-India trade deal.
The recent militant attack on the residential compound linked to the Reko Diq and Saindak mining projects in Nokundi, Balochistan, has marked a significant escalation in the region's conflict and raised serious alarm among foreign investors.
The rupee has fallen from Rs 85 to Rs 90 per USD in under a year, far quicker than previous five-rupee intervals, which earlier took anywhere between 581 to 1,815 days. SBI in its report noted this as the second-quickest fall since the 2013 Taper Tantrum.
As the rupee weakens toward Rs 90 per dollar, Uday Kotak has urged Indian businesses to break out of their comfort zone, warning that foreign investors appear to be calling the shots in current market dynamics.
The pressure in the Indian stock market continued on Wednesday as both the benchmark indices opened in the red, weighed down by persistent selling by foreign investors.
The higher US interest rates and a cautious risk appetite among foreign investors are also resulting in continuous pressure on the Indian Rupee. Experts believed that the rupee's weakness is being reinforced by deteriorating trade fundamentals.
Foreign institutional investors (FIIs) have shown a clear preference for debt instruments over equities during the past one year, according to a recent report by the State Bank of India (SBI).
Foreign investors continued to pare their holdings in select defensive sectors such as energy and consumer staples, while increasing exposure to cyclical and growth-oriented segments like transportation, telecom, and healthcare, according to a report by Elara Securities.
The new Samvat year 2082 is expected to bring stronger and more stable performance for Indian stock markets, with experts projecting double-digit growth driven by robust domestic fundamentals, easing inflation, policy reforms, and renewed foreign investor interest.