Why foreign investors are exiting India
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Foreign Institutional Investors (FIIs) sold Rs 1.14 lakh crore in October and Rs 42,000 crore in November 2024; peak selling previously was Rs 65,816 crore in March 2020; shift of funds from India to China due to perceived safety and growth opportunities; Chinese market saw $96 billion inflows in September 2024; Indian market median PE ratio is 21.9, with Nifty50 PE over 24; Q2 FY25 earnings growth at 3.6%, slowest in 17 quarters; geopolitical tensions and inflation concerns impacting sentiment; FIIs' share in NSE-listed companies dropped to 15.98%, lowest in 12 years; rupee fell to 84.50 against USD; analysts expect FIIs to return by early CY25 as valuations correct; CLSA raised India allocation while cutting China exposure; concerns about the sustainability of the 'Trump trade' and potential market traps for domestic investors.

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https://www.newindianexpress.com/explainers/2024/Nov/24/why-foreign-investors-are-exiting-india