After a brief period of optimism, foreign investors are retreating from Indian stocks as rising crude oil prices and escalating global bond yields shift market dynamics. This change reflects a waning interest in emerging market growth assets, compounded by profit-taking strategies and a pivot towards AI investments. While domestic buying could offer some support, ongoing external pressures may dampen overall returns.

Foreign portfolio investors withdrew ₹7,443 crore from Indian equities in early September, reversing previous months' investments amid economic concerns.

Foreign investors withdraw ₹7,443 crore from Indian equities amid rising U.S. bond yields and concerns over inflation.