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.
The benchmark indices opened with marginal gains, reflecting a cautious stance among investors amid limited global cues as several Western markets remained closed for the New Year holiday.
However, in terms of Emerging Market (EM) Equities, Invesco report said the EM equities have the most attractive valuations relative to other regions, albeit with wide variation within EM. "We anticipate Chinese stocks to continue to outperform while India may struggle."
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.
The domestic equities are expected to deliver a resilient performance over the medium term of 6-24 months, supported by a broad-based recovery in earnings, strong domestic demand and continued policy support, according to a report by PL Capital.
Domestic investors have invested approximately Rs 4.5 lakh crore in the equity markets through mutual funds and other indirect channels this year, reflecting a steady shift in household savings toward market-linked assets, according to a report by the National Stock Exchange (NSE).
The gap between the performance of large cap companies and the rest of the companies in the domestic stock market is expected to continue amid weak earnings, highlighted a report by SBI Mutual Fund.
The domestic share market opened on a weak note on Tuesday as both the benchmark indices slipped into negative territory, weighed down by a falling rupee and continued foreign portfolio investor (FPI) outflows.
Nifty touched a new high of 26,285.95 on Thursday, gaining 80.65 points or 0.31 per cent, marking its first new peak in 14 months as bullish sentiment returned to the markets.
Domestic markets opened flat on Monday as the tug of war between bulls and bears continued, starting another week of cautious optimism amid expectations that indices may soon touch fresh record highs.
A rally in gold prices could be setting the stage for a positive phase in Indian equities over the next 12 months, according to a report by JM Financial.
The consumer staples companies in the country saw stable demand trends during the July to September quarter (2QFY26), though overall performance was affected by the GST transition and extended monsoon season, according to a report by Motilal Oswal Financial Services.