Explore what lies beyond your B-School journey. Hear from industry experts, alumni, and recruiters a...
1 hour ago
Body
The numbers back this up too, FPIs have already dumped equities worth Rs 1.77 lakh crore in 2026 so far, with nearly Rs 1.2 lakh crore leaving in March alone. That’s one of the sharpest exits we’ve seen in years.
this is exactly the kind of stuff that gets thrown at you in an IIM-B or FMS interview when they ask about the current state of the economy or the "attractiveness" of the Indian market.
What do you guys think? Is it just a temporary cooling-off period because of rich valuations, or is our tax structure actually becoming a long-term dealbreaker for global capital?
3 Replies
-
Nithin Kamath is spot on about the tax being 'low-hanging fruit.' The government wants domestic retail participation to replace FPIs, but a market without global liquidity becomes a 'closed-loop' system. That’s a dangerous precedent for a developing economy.
-
Totally agree. Also, the point about 'No real AI plays' is huge. India is seen as an 'Execution' market, not an 'Innovation' market. In 2026, if you don't have an AI story, you're invisible to Silicon Valley capital.
-
If you get this in an IIM-B interview, don't just blame taxes. Talk about the Earnings Yield vs. Bond Yield. If Indian stocks are trading at 25x PE but earnings growth is only 12-15%, the 'Equity Risk Premium' isn't attractive enough for a foreigner when they can get 5% risk-free in US Treasuries
