India the new ‘no-go’ zone for FIIs? 7 brutal truths behind $18 billion exodus

April 14, 2026

Foreign institutional investors have pulled out $18 billion from Indian equities since the Iran war began, dragging the Nifty down over 9% from its peak. Rising oil prices and capital flight have turned India from a preferred market into a cautious bet. Despite corrected valuations, global investors remain unconvinced, with weak dollar returns limiting fresh inflows.

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