Foreign investors have withdrawn 1.

Foreign investors have withdrawn 1.8 trillion rupees from Indian equities in FY26, marking the largest outflow in 34 years. However, market analysts suggest this may represent a long-term opportunity rather than a crisis. The pullback reflects a sentiment-driven correction caused by external factors including US tariff uncertainty, rupee weakness, elevated global yields, and geopolitical tensions. India's economic fundamentals remain structurally sound. Global portfolio rebalancing toward higher US bond yields and technology stocks has driven capital away from emerging markets temporarily. Currency depreciation and moderated earnings growth have compounded pressure on foreign investors. Historically, such phases have coincided with strong entry points for patient long-term investors.