Foreign Capital Reprices The India Premium

India’s market isn’t losing relevance, but with foreign investors turning selective, FY27 will hinge on whether earnings and macro stability can justify its premium

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Zerodha cofounder Nithin Kamath didn’t mince words when he said foreign investor interest in India has “pretty much died out.” This comment, coming just a few days ago, definitely sparked a discussion. But even before Kamath spelt it out, many reports had already indicated this.

Foreign investors have experienced no returns in Indian stocks for four and a half years, DSP Mutual Fund’s Netra report flagged recently. 

Foreign institutional investors (FIIs) have offloaded domestic equities worth ₹48,210 Cr in April so far, extending their selling trend in the Indian markets. They have sold shares worth ₹1,79,335 Cr on a year-to-date basis.

As India Inc closes Q4 FY26 and enters into the earnings season, it finds itself at the intersection of two forces. One is cyclical and familiar: global liquidity tightening, rising US yields, and........

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