India’s Finance Minister Nirmala Sitharaman says India’s stock market underperformance is linked to “easy exits” and excess liquidity, even though she characterizes the country’s economic fundamentals as sound. The remarks focus on how global investor flows and liquidity conditions are affecting equity returns.
Multiple reports note that foreign portfolio investors have been net sellers of Indian equities this year, with cumulative direct outflows of more than $33 billion cited in one account. Outlets also point to capital shifting toward AI-linked markets, such as Taiwan and South Korea, which may further weigh on demand for Indian assets. CNBC adds that continued capital outflows are among the biggest risks the minister flags for 2027, framing the issue as a forward-looking concern rather than a one-off market move.
Overall, the coverage presents the minister’s explanation as centered on cross-border positioning and global liquidity dynamics, with outlets differing mainly in the emphasis—some highlighting sectoral/region shifts in flows, others stressing the longer-term risk outlook.
