FII Selling: Why Foreign Investors Are Avoiding India And What Could Trigger Their Return To Markets
- Updated Oct 26, 2026 2:31 PM IST
Foreign institutional investor outflows have weighed on Indian equities, raising questions about when overseas money could return. Gautam Shah, Founder, Goldilocks Global Research, explains why global investment opportunities, the artificial intelligence boom and taxation differences are influencing foreign investor sentiment. He believes domestic institutional and retail money continues to provide crucial support to Indian markets, reducing dependence on foreign flows. However, attracting sustained overseas investment may require policy action on taxation and stronger participation by Indian technology companies in the global AI opportunity. The discussion examines what could change foreign investors’ outlook towards India and revive FII inflows.
