Foreign investors bought fewer Indian securities in FY26. Outflows increased as West Asia conflict escalated. Economists predict muted flows in FY27 due to the Gulf conflict and a weaker rupee. Concerns over government finances also impacted sentiment. A major trigger like bond index inclusion is needed for significant inflows.
Explained: Why global brokerages are hitting panic button on India. FII exodus, oil shock ringing alarm?
Equity market has shifted sharply from optimism to crisis mode, marked by a record $13 billion FII outflow in March—the worst ever. The sell-off has