Foreign fund managers are cutting India exposure as earnings cool and oil hits rupee

Selling may slow, but India may stay unpopular longer

Foreign investors have sharply trimmed their holdings in Indian equities, citing slower earnings growth, a tech-led AI surge in South Korea and Taiwan, and a costly mix of higher oil prices with a weakening rupee. The result has been heavy outflows. While strategists expect selling to ease, they warn India may not quickly regain its former appeal.