Cheap stocks aren’t enough: The one trigger FIIs need to return to India
Economic Times 1 hr ago·2 Nov 2026, 5:30 am
Foreign Institutional Investors (FIIs) have been selling Indian stocks aggressively, pulling out nearly $64 billion over the last two years. This marks the longest and deepest period of outflows in two decades. Despite the market looking cheaper than before, foreign investors are hesitant to return. The primary reason for this hesitation is the high cost of doing business in India, driven by expensive crude oil prices. Until these costs come down, FIIs are likely to stay on the sidelines.
For investors, this prolonged selling pressure has kept foreign capital away, which can limit market upside. However, a sustained drop in crude oil prices could be the turning point. Cheaper energy costs would improve corporate profits and lower the cost of doing business, making Indian equities more attractive. The key trigger to watch is whether oil prices remain low enough to convince foreign investors to restart their buying spree.
Affected stocks
Bearish1 stock
Bull / bear label is derived from the article's AI sentiment — indicative, not advice. Prices may be delayed.
Key takeaways
- Concerns JM Financial (JMFINANCIL).
- Category: Results.
- AI reads the tone as negative (potentially bearish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
This is a high-impact development for JM Financial and could move the stock. The tone is negative — watch for downside reaction. Use the price and stock snapshot to gauge how the market is responding.
