Driven by global uncertainties, rising oil prices, and a weakening rupee, FDI outflows are raising concerns about the resilience of India’s markets

Far from the hustle and bustle of elections, Indian markets are bleeding. In January 2026, over 400 stocks with a market capitalisation of at least USD 1 billion declined by more than 20 per cent from their peaks, with some falling as much as 71 per cent. As of mid-January 2026, the market experienced a sharp decline, with some reports indicating a 5 per cent loss for the month. This is not a one-time event, but a trend that is becoming increasingly pronounced. The reason, of course, is the flight of capital from the country, as foreign investors have been withdrawing heavily. Foreign Portfolio Investor (FPI) outflows from India were over Rs 60,000 crore in April alone and nearly Rs 2 lakh crore........

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