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Domestic investors steady Indian markets as FIIs exit and valuations lag global peers

Economy
Published on 12 May 2026
Domestic investors steady Indian markets as FIIs exit and valuations lag global peers

Why foreign money is steering clear right now

Even as foreign portfolio investors pull back, Indian equities are holding up, propped by domestic buying. Market veteran Gautam Trivedi points to a growing split between economic fundamentals and market appeal to foreigners. With India seen as less attractive than AI-linked and commodity-driven emerging peers, domestic retail and institutions are stepping in to absorb FII outflows and support benchmarks.

  • FII exits are being offset by strong domestic inflows
  • Foreign investors find India less attractive versus AI and commodities peers
  • Retail and institutional buyers are supporting benchmark indices
Read the full story at The Economic Times

This summarization was done by Beige for a story published on The Economic TimesThe Economic Times

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