HSBC downgraded Indian stocks to “underweight,” citing rising energy prices tied to the Middle East war. The bank warns the shock could cloud India’s earnings recovery and make the market less attractive than North East Asian peers. Foreign investors have also been net sellers, though HSBC points to selective opportunities in private banks, base metals and healthcare.
FY26’s primary market proved rough for new listings, with volatility and a foreign investor exodus weighing on post-listing performance. Out of 109 mainboard IPOs, only about a third delivered positive returns. A handful of names still surged, including Ather Energy and Belrise Industries, underscoring how uneven the IPO opportunity became.
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Indian markets slid for a third straight session as escalating Iran US tensions pushed oil higher, dragging sentiment and pushing the Sensex and Nifty lower. Foreign investors stayed net sellers, adding pressure. While broader markets managed relatively better, IT stocks fell sharply after weak Q4 earnings, underscoring how mixed performance is reshaping investor bets.
Dubai has merged real estate and residency services into a single system through cooperation between the General Directorate of Identity and Foreigners Affairs and the Dubai Land Department. The move is designed to streamline applications, cut processing times, and improve coordination for residents and investors navigating property and residency requirements.
Indian equities have trailed global peers over the past year, hurt by soft earnings, elevated valuations, and foreign investors trimming holdings. The picture may be improving incrementally as valuations look more reasonable and policy reforms, along with global shifts, could draw fresh flows. Analysts suggest a potential rebound within 12 months, with attention turning to specific sectors.
By end-2025, foreign investors reportedly sold about INR 1.6 lakh crore in India, marking one of the weakest years for Indian markets. While US-linked global capital is reportedly shifting to other emerging markets, FIIs are still staying away from India. The key question is why India remains sidelined despite being a major growth story.
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The Indian rupee finished FY26 as Asia’s weakest currency, sliding 9.88% versus the US dollar. Analysts point to heavy foreign investor withdrawals alongside strong global dollar demand. The Reserve Bank of India intervened to curb volatility, while the Japanese yen also weakened. In contrast, the Malaysian ringgit outperformed peers.
FY26 turned out to be India’s worst year for stocks since the pandemic, with foreign investors selling a record amount of Indian shares. Trade tariffs and regional conflicts hit global sentiment, while the rupee declined sharply. Even so, the editorial argues India’s fundamentals stay resilient, and recovery may depend on stabilising energy prices.
After equity momentum faltered, traders are shifting attention to commodity derivatives. With gold and silver climbing to record highs, MSCI India lagging global peers, and foreign investors moving out, brokers are adjusting offerings to capture the new flow. What was once seen as too volatile is now drawing fresh wagers as equities stall.
RBI’s foreign exchange curbs are triggering a profit-taking cycle in India’s government bond market. As hedging costs surged to 12-year highs, overseas investors reportedly pulled out ₹222 billion, pushing the benchmark 10-year yield to 7.15%. The move has lifted borrowing costs to a two-year high, amplifying pressure on fixed-income sentiment.
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