Finance Minister Nirmala Sitharaman on Sunday said individual persons residing outside India (PROI) will be permitted equity investments in listed Indian companies through a portfolio investment scheme.
Foreign investors pulled out Rs 17,955 crore (Rs 2 billion) from Indian equities in the first two weeks of this month, taking the total outflow to Rs 1.6 lakh crore (Rs 18.4 billion) in 2025.' This sharp withdrawal follows a net outflow of Rs 3,765 crore in November, extending the pressure on domestic equity markets.
Foreign investors fled Indian equities in 2025 at a scale never seen before, pulling out a record Rs 1.6 lakh crore (USD 18 billion) as volatile currency movements, global trade tensions, especially potential US tariffs, and stretched valuations eroded risk appetite, though flows are expected to turn sustainably positive in 2026.
Equity benchmarks face a key test as investors weigh consumption revival hopes against tariff pressures and weak earnings. Amidst this, HSBC has outlined tailwinds and risks that could cap gains.
Trade deals ease risks for Indian equities, but weak demand and stretched valuations raise questions over whether optimism -- especially in smallcaps -- can turn into a sustained bull run, points out Debashis Basu.
Analysts predict that the ongoing conflict in West Asia, crude oil price fluctuations, and the US Federal Reserve's interest rate decision will significantly influence the Indian equity market this week.
Recent developments - proposed changes to the goods and services tax (GST) rates and S&P Global Ratings' upgrade of India's long-term sovereign credit rating to BBB, with a stable outlook, - may not be enough to bring foreign investors back to Indian markets in a rush, feel analysts.
Analysts predict continued volatility in Indian equity markets due to domestic macroeconomic data, F&O expiry, global developments including US tariff policies, and geopolitical tensions.
Foreign investors have withdrawn over Rs 88,000 crore from Indian equities this month, driven by geopolitical tensions, a weak rupee, and concerns about rising crude oil prices.
Indian benchmark indices Sensex and Nifty experienced a sharp decline in early trading due to escalating tensions in the Middle East, driving crude oil prices higher. Global market bearishness and foreign fund outflows further contributed to investor unease.
After withdrawing money on a net basis for the past three months, foreign portfolio investors (FPIs) have turned buyers with a Rs 6,480 crore investment in October so far, driven by strong macroeconomic factors.
Analysts predict that developments in West Asia and their impact on crude oil prices will heavily influence investor sentiment in the upcoming week. Global market trends, foreign investor activity, and rupee-dollar movement will also play a role.
Indian equity markets experienced a volatile session, with the Sensex and Nifty recovering some ground after a significant plunge the previous day. Gains were driven by PSU bank, IT, and metal stocks, but concerns over rising fuel prices and geopolitical tensions limited the recovery.
Indian markets on Dalal Street rallied sharply as easing tensions in the US-Iran conflict and stable oil prices boosted sentiment. Track Nifty 50 and BSE Sensex performance and key global triggers.
Global risks include a potential delay in the US-India trade agreement, the possibility of a sharp correction in US equity markets, and renewed geopolitical tensions.
Foreign portfolio investors withdrew over Rs 22,530 crore ($2.5 billion) from Indian equities so far this month amid rising US bond yields and a stronger dollar, continuing their selling streak from last year. This came following an outflow of Rs 1.66 lakh crore ($18.9 billion) recorded in 2025, triggered by volatile currency movements, global trade tensions and concerns over potential US tariffs and stretched market valuations.
Foreign portfolio investors (FPIs) withdrew a substantial amount from Indian equities in the first half of March, driven by geopolitical tensions, rupee depreciation, and concerns about crude oil prices.
The Indian rupee weakened to a record intra-day low against the US dollar due to a strengthening greenback, continuous foreign capital outflows, and elevated global crude oil prices amidst the West Asia conflict.
Indian benchmark stock indices Sensex and Nifty rebounded, closing over 1% higher, mirroring a global equities recovery after recent losses due to geopolitical tensions.
Investing in gold trumped most other asset classes in terms of compounded annualised returns over the long term, suggests a report by FundsIndia.
Foreign portfolio investors (FPIs) infused Rs 22,615 crore into Indian equities in February, marking the highest monthly inflow in 17 months, driven by factors such as the interim India-US trade deal, correction in domestic market valuations, and strong corporate earnings.
Foreign portfolio investors have started 2026 on a cautious note, extending their selling streak from last year by withdrawing Rs 7,608 crore ($846 million) from Indian equities in the first two trading sessions of January. The withdrawal of funds followed the largest outflow of Rs 1.66 lakh crore ($18.9 billion) recorded in 2025, triggered by volatile currency movements, global trade tensions and concerns over potential US tariffs, and stretched market valuations.
Foreign investors pulled out Rs 21,000 crore (around $2.3 billion) from Indian equities over the last four trading sessions amid deteriorating global risk sentiment triggered by the West Asia crisis.
Indian benchmark stock indices Sensex and Nifty rallied for the second consecutive day, closing nearly 1 per cent higher, driven by gains in metal and auto sectors and positive global market trends.
The rupee plunged to a fresh low of 93.72 against the dollar on Friday, falling 1.15 per cent in a single session - its sharpest one-day decline since February 24, 2022 - as elevated crude oil prices and strong dollar demand from oil-marketing companies and foreign portfolio investors (FPIs) weighed on the currency.
Sensex and Nifty post steepest weekly loss in over a year, falling nearly 3 per cent.
Indian equity markets experienced a significant downturn, with the Sensex and Nifty plummeting due to rising crude oil prices, geopolitical tensions in West Asia, and continuous foreign fund outflows.
'The day is not too far when the share of MFs alone will be greater than that of foreign institutional investors.'
Indian stock market benchmark indices Sensex and Nifty experienced a significant decline, driven by escalating tensions in the Middle East and rising crude oil prices.
Macroeconomic data announcements, global trends and trading activity of foreign investors would be major driving factors for market movement this week, analysts said. Unabated capital infusion by domestic institutional investors have supported the positive trend in the stock market last week, traders said.
The Indian rupee weakened against the US dollar due to sustained foreign fund outflows and uncertainties in West Asia, although lower crude oil prices and a positive opening in domestic equity markets limited the losses.
'What has changed is that the new regulations are backed by a clear enforcement framework. They have real consequences and, for the first time, make compliance unavoidable.'
Foreign investors pulled out Rs 4,285 crore from Indian equities in the first three trading days of the month driven by apprehensions ahead of the third-quarter earnings season and high valuations of domestic stocks. This came following an investment of Rs 15,446 crore in the entire December, data with the depositories showed.
For decades, multinational pharmaceutical companies and Indian drugmakers worked in ways that supported each other: MNCs brought innovation and brands, while Indian companies built scale through generics and cost efficiency. There was an important overlap - generic drugs - but this is shrinking fast. And the consequences are reshaping India's gigantic pharmaceutical market.
2025 marked a shift in investor preference when it comes to MF schemes.
Indian stock market benchmarks Sensex and Nifty rebounded strongly after a two-day decline, driven by falling crude oil prices and positive global cues amid hopes of de-escalation in the Middle East.
One consortium is led by Manipal Hospitals' Dr Ranjan Pai along with US private equity firm KKR and Singapore investment major Temasek. The other is a combine of Swedish private equity firm EQT and Premji Invest, the investment office backed by Wipro founder Azim Premji.
Foreign investors have remained cautious ahead of the Union Budget amid expectations of limited policy changes.
Benchmark indices Sensex and Nifty ended lower on Thursday, snapping a three-day rally, amid a weak trend in global stock markets.
A consortium led by the Aditya Birla Group emerged the lead bidder to acquire IPL franchise Royal Challengers Bengaluru for a whopping Aditya Birla Group-Led Consortium Acquire IPL Champions RCB for Rs Rs 16,660 crore.
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