foreign investment inflows

The exuberance of Indian investors has pushed valuations so high that MNCs as well as PE/VC funds are seizing the opportunity to exit

Foreign investors have continued their withdrawal from Indian equities, with net outflows reaching Rs 27,048 crore this month. This selling spree, totaling Rs 2.2 lakh crore in 2026, is driven by global macroeconomic uncertainty, geopolitical tensions, and a stronger US dollar making developed markets more attractive.

S&P Global has said that the country has adequate financial buffers to manage a wider current account deficit that could emerge because of rising crude oil prices. India’s current account deficit has narrowed over the past few years, although fluctuations in global crude prices now pose a risk to that improvement.

The PM wants us to use public transport, shift to electric vehicles, work from home, take fewer vacations abroad, and reduce gold purchases. The reason isn't as sudden as you might think

The CEA’s words could not be more direct and the situation the world’s sixth largest economy faces is by no means small. Several macroeconomic indicators are in focus; inflation, health of the current account, and the exchange rate.

According to data compiled by Bloomberg, Taiwan’s overall market capitalisation rose to $4.95 trillion as of Monday, while India’s market value declined to $4.92 trillion.

Rupee depreciation is not new, what is new however is the rapid pace at which it is falling. It’s the biggest risk for India’s external sector resilience at the moment. In just over a year, the rupee has depreciated over 14%.

PM Modi has called on citizens to adopt measures aimed at conserving foreign exchange, as the surge in oil prices triggered by the Iran conflict has intensified pressure on the rupee and strained India’s foreign exchange reserves.

Rupee hit a fresh record low of 96.07 against the US dollar on Friday, extending its losing streak over three straight sessions amid soaring crude oil prices and escalating tensions in West Asia. At the interbank foreign exchange market, the rupee opened at 95.86 against the US dollar and slipped further to 95.94, down 30 paise from its previous close.

The move to up the gold import duty comes days after PM Narendra Modi appeals to citizens to avoid unnecessary gold purchases for a year. But is a hike in duties an effective way to curb consumption? We take a look:

The proposal was suggested by the Reserve Bank of India and is currently under active consideration by the Finance Ministry, sources said. Talks around reducing taxes for overseas investors have accelerated amid efforts to slow the rupee’s decline, they added.

Every Re 1 hike in petrol, diesel, CNG, and LPG costs feeds into inflationary pressures in the economy, and also indirectly impacts discretionary spending, hence hitting growth channels.

Foreign investors are significantly reducing their stake in Indian equities, with FII ownership hitting a multi-year low. Concurrently, domestic institutional investors, particularly mutual funds fueled by SIPs, are increasing their holdings, absorbing much of the foreign selling and reshaping market ownership.

Falling exchange rate can curb imports more effectively than austerity measures. Don't intervene in forex market

Despite the bullish undertone in equities, several risk factors continue to keep investors on edge. The rupee touched a fresh record low after breaching the 95.8 mark against the US dollar for the first time.

India's enduring love for gold spans centuries, evolving from tradition to modern investment. Women hold vast reserves, and the market is set for significant growth. Digital gold and ETFs are gaining traction alongside traditional jewellery. Gold remains a symbol of prosperity, security, and auspiciousness for Indians across generations.

India’s gold imports hit a record $71.98 billion in 2025-26, rising over 24% from $58 billion a year earlier. This was largely due to skyrocketing global gold prices, which have bumped up the value of imported gold.

Foreign investors are exiting Indian stocks, with outflows reaching Rs 60,847 crore in April, following a massive Rs 1,17,775 crore sell-off in March. This trend signals sustained weakness in overseas investor sentiment, as global capital shifts towards Asian economies benefiting from the AI investment boom, particularly South Korea and Taiwan.