Foreign investor skepticism on Indian equities hits two-year high: US Tariffs, weak rupee weigh down FPIs; low long-short ratio offers hope

Foreign investment managers are increasingly skeptical about Indian equities due to a weakening rupee, US tariffs, and high valuations. This negative sentiment has triggered accelerated foreign withdrawals, with bearish derivative positions reaching a peak. Concerns over tariffs and slower-than-anticipated growth are driving investors towards alternative markets, contributing to a six-week downward trend in Indian indices.