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Why foreign capital is fleeing India
Smartphone makers are battling a new regulatory challenge | Reliance faces challenges to its lithium-ion dreams
Monday, 12 January 2026
Good afternoon, folks
Foreign portfolio investors marked a record sell-off in Indian equities in 2025. We break down why foreigners are fleeing from Indian equities even as domestic investors remain bullish. FPI pullback is more about global cycles and valuations rather than a verdict on India’s growth story.
Today at a glance
India Focus
Investment Watch
The Big Story
A 2026 outlook on Indian equities: Why FPIs sell as domestic capital takes charge
As foreign portfolio investors exit Indian equities in a record…
Jio Platforms IPO awaits regulatory changes to kick in
A Sebi regulatory change allowing a minimum public float of 2.5% would shape the timing and size of the potential offering
INDUSTRIES
Automotive
Ashok Leyland, Al-Futtaim deepen Middle East collaboration in Qatar
Skoda Auto eyes Saudi exports from Indian factories.
Aviation
Saudi adds Kozhikode to India network with new Riyadh service
Plus: Lenovo to produce AI servers in India
Banking
RBI bins 9.4k regulatory circulars in a bid to make it easier to do business
New framework covers 11 regulated entity categories across the financial…
Construction
L&T bags major orders in Saudi Arabia
With a surge in contracts, L&T continues to take on…
Energy
India’s refiners stay flush as gas demand tapers — a mixed signal for MENA exporters
Stronger refining margins and steady city gas distribution earnings are…
Financial Services
ENBD outlines post investment strategy for RBL Bank, expresses faith in Indian economy and regulators
The investment will significantly lift RBL’s capital base and support…
Startups
Investment in Indian tech startups sink to five-year low as Gulf capital turns selective
Gulf funds scaled down India tech activity in 2025, with…
POLICY
India’s budget plans: streamlining customs clearance; bolstering manufacturing
India is considering an overhaul of its customs duty system…
Sebi cuts red tape for sovereign wealth funds, pension pools
The framework, effective June 2026, eliminates repeated documentation, allowing eligible investors to participate in both listed securities and unlisted startup ecosystems
