Indian Stock Market Faces Decline in Foreign Portfolio Investment

Foreign portfolio investment in India has taken a hit recently, with foreign investors showing a lack of interest in Indian stocks. Despite India's rapid economic growth and Prime Minister Narendra Modi promoting the country's investment appeal, foreign investors have been pulling out of the Indian stock market. In April, foreign investors sold off $1 billion worth of Indian shares, followed by another $4.2 billion in May. This trend has reduced the share of the Indian stock market held by foreigners to just 18%, the lowest level in twelve years. This decline in foreign portfolio investment raises concerns about the future performance of Indian equities and the overall health of the stock market.