Foreign investors pull Rs 35,000 crore from Indian markets in four days

Foreign portfolio investors (FPIs) have intensified their exit from Indian markets, with fresh outflows of Rs 9,484 crore recorded in a single trading session. The massive selloff brings the total withdrawal over a four-day period to nearly Rs 35,000 crore, underscoring growing concerns about valuations and shifting global investment preferences.

The relentless foreign selling has added pressure to Indian equities at a time when global monetary conditions remain tight and investors are reassessing exposure to emerging markets. FPIs have been net sellers from Indian markets on multiple occasions this year, citing concerns ranging from elevated valuations to geopolitical uncertainties affecting the broader Asia-Pacific region.

However, domestic institutional investors have emerged as a stabilizing force, providing substantial counterbalance to the foreign exodus. Mutual funds, insurance companies, and other domestic players have maintained their buying interest, absorbing a significant portion of the selling pressure and preventing sharper market declines.

The divergence between foreign and domestic investor flows highlights the complex dynamics at play in Indian markets. While FPIs remain sensitive to global factors and relative valuations, domestic investors continue to show confidence in India's long-term growth prospects, maintaining their investment stance despite the heightened volatility.