Overview

• Foreign portfolio investors have net sold ₹22,185 crore of equities in July to date, marking the third-largest monthly outflow of 2025.
• A Jefferies report shows the MSCI India Index trading at nearly 1.5 times its 10-year average and at a premium to other emerging markets, intensifying valuation concerns.
• Prospects for an interim India–US trade deal before the August 1 deadline have dimmed, raising investor caution.
• Subdued Q1 FY26 corporate earnings have undercut market sentiment as companies cite macroeconomic headwinds.
• Despite secondary market selling, FPIs continue to invest in primary market issuances like QIPs where valuations remain fair.