Morning Brief Podcast: Big Money's Mood Swings: Explaining the FII Flight
Big Money's Mood Swings: Explaining the FII Flight
Anirban Chowdhury | 12:49 Min | August 12, 2025, 6:34 AM IST
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In this episode, we dive into why foreign investors have been quietly pulling billions out of India's stock markets even as they talk up the country's growth potential. We break down the main drivers: stock prices are high compared to history and other Asian markets, corporate earnings growth has slowed, the rupee has weakened, and economic activity has lost some steam. And then came the curveball hefty U.S. tariffs on Indian exports. This unexpected move has rattled investors already on the edge. While strong domestic inflows from Indian investors have helped steady the market, foreign money still matters, because it's often seen as a measure of global confidence in the economy. Host Anirban Chowdhury with ETs markets editor Nishanth Vasudevan explore the different kinds of foreign investors from 'hot money' chasing short-term opportunities to patient, value-focused funds waiting for the right moment. The question now is: will they return if the market takes a dip, earnings bounce back, or growth accelerates again?
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