foreign portfolio 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

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.

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.

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.

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

Uday Kotak, founder of Kotak Mahindra Bank, urged India to reduce its reliance on foreign capital and cultivate a robust domestic pool of long-term risk capital for true self-reliance. He emphasized that companies should prioritize building businesses with a three-to-five-year vision over short-term stock price fluctuations, advocating for stronger domestic private equity and venture capital ecosystems.

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%.

The Indian rupee hit a historic low against the US dollar, pressured by corporate demand and soaring crude oil prices. Authorities are considering measures like incentivizing foreign currency deposits and easing tax rules for overseas investors to boost dollar inflows.

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.

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.

The central government has announced 100% Foreign Direct Investment (FDI) in insurance companies via the automatic route, enabling full foreign ownership. This move, aligning with the Sabka Bima Sabki Raksha Act, 2025, aims to boost foreign participation, with IRDAI approval required. LIC remains an exception with a 20% FDI limit.

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.

Global markets rallied, including India's Sensex, as a West Asia peace plan offered hope for an end to the conflict. Foreign funds made significant inflows after weeks of selling, boosting investor wealth. However, tech stocks faced selling pressure due to renewed AI concerns.

Foreign investors are continuing their significant sell-off in Indian stocks, withdrawing over Rs 48,000 crore in early April. This follows a record Rs 1.17 lakh crore exit in March, driven by global uncertainty and escalating West Asian tensions. Analysts cite rising crude oil prices and a weaker rupee as key concerns, with some Asian markets appearing more attractive for now.

The Indian Rupee has fallen sharply against the US dollar. Geopolitical tensions in the Middle East are intensifying, causing oil prices to rise above $100 per barrel. Investor sentiment has turned cautious as ceasefire hopes fade. Foreign investors are withdrawing funds from Indian equities amid global uncertainty. Experts advise disciplined monthly investments through SIPs.

Today is Akshaya Tritiya, an auspicious day in the Hindu calendars, believed to bring lasting prosperity and good fortune. Buying gold on this day is considered auspicious. Experts believe that returns on gold over the last few years reinforce its role as a long-term wealth preserver.

Fundamentally, foreign exchange reserves tell us about a country’s ability to service its external debt. The more robust the cover, the better a country’s position of economic strength. So how strong is India placed in terms of foreign exchange reserves?