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Sitharaman says easy exits are hurting Indian equities

2026-10-19 · 1 source · Economic Times Markets

In short

Finance Minister Nirmala Sitharaman said easy liquidity is making it easier for investors to leave Indian stocks. She said the Nifty and Sensex are not giving positive returns.

The report says foreign investors have pulled out nearly $63.6 billion since October 2024. It does not say what new policy, if any, will follow her comments.

What the reporting says

Finance Minister Nirmala Sitharaman said easy liquidity is letting investors exit Indian equities while the Nifty and Sensex struggle to deliver positive returns. The summary also says foreign investors have pulled out nearly $63.6 billion since October 2024, erasing nine years of inflows, with rising US yields, a stronger dollar and AI-driven shifts cited as pressures. The reporting does not say whether her remarks led to any policy action or market move.

Why it matters

Nirmala Sitharaman said easy liquidity is helping investors exit Indian equities as the Nifty and Sensex underperform. The report says foreign investors have withdrawn nearly $63.6 billion since October 2024, wiping out nine years of inflows. It also links the pressure to higher US yields, a stronger dollar and AI-related allocation shifts. The immediate relevance is to Indian equity markets and foreign portfolio flows, but no policy response is stated.

Touches: Markets, Economy, Global

Sources