Foreign investors have divested $53 billion from Indian equities since late 2024, leading to underperformance against emerging markets. Domestic institutions have stepped in, becoming the dominant force and increasing their shareholding to a record 18.6%, effectively 'domesticating' the market and cushioning FII selling pressure on select stocks.

Foreign investors have divested $53 billion from Indian equities since late 2024, leading to underperformance against emerging markets. Domestic institutions have stepped in,…

Foreign investors are hesitant to re-engage with Indian markets until the rupee stabilizes and the government demonstrates a willingness to compromise. Despite concerns about…