Foreign Investors Exit Indian Market: Why Rupee is Falling Amidst High Valuations
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CNBC Awaaz•29-01-2026, 12:50
Foreign Investors Exit Indian Market: Why Rupee is Falling Amidst High Valuations
- •Foreign Portfolio Investors (FPIs) are continuously selling in the Indian stock market, leading to volatility.
- •High market valuations are a primary reason, as investors feel future returns are limited and risks are high.
- •Uncertainty in India-US relations, including tariffs and geopolitical shifts, makes investors cautious.
- •Changing global trade environment and protectionism are forcing Indian companies to invest abroad, impacting domestic capital flow.
- •The rupee is weakening due to increased dollar demand, as foreign investment isn't sufficient to cover India's trade deficit.
Why It Matters: FPIs are withdrawing from India due to high valuations, geopolitical uncertainty, and global trade shifts, weakening the rupee.
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