Foreign investors continued to pull out capital from Indian equities, especially from export-linked sectors.
This hits sentiment at a time when global trade and tariff risks heighten uncertainty.
Weak foreign flows also strain currency and bond markets.
Net outflows limit rebound potential even if valuations a
ppear attractive.
Domestic institutions and retail may partially offset but not fully reverse flows.
Sustained FII absence may keep markets rangebound or biased to downside.
Inflows may hinge on resolution of U.S. tariff policies and clarity on g
lobal rates.
Investors may require stronger triggers to re-enter with conviction.
Managing sector exposure and liquidity becomes crucial in this phase.
Overall, FII dynamics remain a key pivot for Indian markets amid curr
ent shocks.