FM Blames Easy Liquidity For FPI Exodus | When Will Foreign Investors Return To India?

Finance Minister Nirmala Sitharaman has attributed foreign portfolio investor (FPI) exits from Indian equities to excess global liquidity, saying it is making capital flight easier. She has maintained that India's economic fundamentals remain strong, while flagging concerns around capital outflows driven by artificial intelligence developments and the US market. Foreign investors have reportedly sold around $33 billion worth of Indian equities in 2026. But can the selling pressure reverse? Market expert Avinash believes a sustained turnaround may take time, citing macroeconomic conditions, the rupee and corporate earnings. He expects the December quarter earnings season to be a crucial test for companies and says foreign flows could improve if results meet expectations. Watch the full discussion for the outlook on FPI flows.