BS EDIT: Fundamental factors

By Business StandardPublished On Nov 4, 2026

Market jitters persist

The Nifty 50 is down about 9% this year and flat since January 2025. Sustained FPI selling has added to retail investor anxiety

Tax debate resurfaces

FPIs have net sold nearly ₹2.9 trillion worth of Indian equities this year, renewing calls to reconsider long-term capital gains tax

Tax is not the trigger

India's tax structure remained unchanged during the strong capital inflows of 2023-24. This suggests taxation alone cannot explain the recent outflows

Global forces drive outflows

Global capital is flowing towards AI-led opportunities, where India's presence remains limited. Rising government bond yields are also making other assets less attractive

Macroeconomic pressures mount

Higher oil prices and global uncertainty are straining India's balance of payments and weighing on the rupee, complicating macroeconomic management

Policy needs a wider lens

India needs robust foreign capital to supplement domestic savings. Tax policies should remain globally competitive without distorting investment decisions