Foreign investors are dumping Indian stocks at record pace.

Foreign investors are dumping Indian stocks at record pace. Overseas investors have pulled a net $11.7 billion from Indian equities through March 25, marking the steepest monthly exodus on record. The selloff reflects a perfect storm of concerns: surging energy costs, a weakening rupee, sluggish earnings recovery, and rich valuations that have lost appeal. Global sentiment has turned decidedly bearish, with Goldman Sachs, Morgan Stanley, and UBS all downgrading Indian market expectations. The broader emerging markets picture is equally grim, with approximately $52 billion flowing out of Asian equities since geopolitical tensions escalated. Portfolio managers note the lack of a compelling narrative to attract capital back, even if conflicts ease.