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India’s market slump: Here’s why palliatives aren’t enough to attract foreign investors

India’s market slump: Here’s why palliatives aren’t enough to attract foreign investors

India’s market slump: Here’s why palliatives aren’t enough to attract foreign investors


The slump in Indian markets is partly because of large-scale selling by foreign portfolio investors (FPIs), who have pulled out about ₹3 trillion from Indian equity markets so far this year, a decadal high. The outflows have weakened the rupee, and in turn lowered the dollar returns foreign investors earn from Indian equities.