Foreign portfolio investors (FPIs) have experienced unprecedented net outflows from Indian stock markets, surpassing ₹2.1 lakh crore (approximately $25.5 billion USD) in just over four months, marking the worst yearly figure since 1993. This outflow has reduced foreign ownership in Indian equities to a 14-year low of 14.7%, compared to 18.9% for domestic institutions, as reported by JM Financial. The bulk of these withdrawals occurred in March 2025, coinciding with the onset of geopolitical tensions in West Asia and a significant depreciation of the Indian rupee, which fell below ₹95 to the dollar. While the pace of selling has slowed, analysts from Goldman Sachs indicate that the risk of further foreign selling is limited to about $4-5 billion, or nearly ₹50,000 crore. However, foreign re-investment in Indian stocks may remain hindered due to various factors, including the correlation of foreign flows with oil prices and uncertainty surrounding earnings revisions. The report emphasizes that India's current valuations are less attractive compared to other North Asian markets, further complicating the outlook for foreign investments.