Two years on from September-end 2024, when foreign investors began pulling money out of Indian equities, a lot has changed for Dalal Street. The Sensex has lost 13.6% and the Nifty 11.6% in absolute terms, even as peers like Korea (167%) and Taiwan (110%) surged.
FPI outflows of over Rs 2.17 lakh crore in the past year have been offset by strong domestic mutual fund inflows of Rs 4.98 lakh crore, cushioning the market from a sharper drop.
Read more: Two years on, Indian equities remain stuck in a grind
The AI trade elsewhere, the West Asia crisis, higher oil prices and a weaker rupee have weighed on India, with sectoral casualties such as IT (-33.4%) and FMCG (-30.2%) deepening the underperformance. The bright spot: valuations have cooled, with the Sensex’s trailing PE at 20.3 times, below its five- and ten-year averages, leaving India relatively cheaper than many global peers.
Read more: Rupee's likely to slip despite RBI push for stability
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Indian markets struggle to keep pace with global peers amid oil, rupee and geopolitical pressures
Foreign Portfolio Investors have withdrawn significant funds from Indian equities, resulting in notable market losses. Meanwhile, domestic mutual fund inflows have provided some support, mitigating these losses. Sectoral performance has varied, with IT and FMCG experiencing declines amid external challenges. Valuations in India have cooled, making the market comparatively cheaper relative to…
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- The Economic Times
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- 173 words · 1 min
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This story was reported and first published by The Economic Times on 27 September 2026. HUE Legacy Ventures did not write it.
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