This has turned out to be the worst month so far, as foreign investors continue pulling out from their Indian investments amid the Iran-Israel war.
Commenting on the current trends, Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments said the weakness in global equity markets following the war in West Asia, the steady depreciation of the rupee, fears of decline in remittances from ...
The narrative presents a clear cause-and-effect relationship between geopolitical tensions and market behavior, with the Iran-Israel conflict serving as the primary driver of FPI outflows. The strongest version of this argument acknowledges the interconnectedness of global markets, where regional conflicts can trigger broader risk aversion. However, the analysis leans heavily on immediate triggers—war, crude prices, and currency depreciation—while underemphasizing structural factors like India’s...