Foreign Capital Exits India as Hedging Costs and Risks Rise
Foreign investors exit Indian markets as currency curbs raise hedging costs. High oil prices and war-related earnings risks weigh on broader market sentiment.
Xurve View
Insights:
Xurve View
Foreign investors are becoming increasingly cautious regarding India as a combination of regulatory foreign exchange restrictions and geopolitical tensions weigh on the nation's financial markets. The Reserve Bank of India’s efforts to stabilize the rupee have inadvertently increased hedging costs, diminishing the attractiveness of local bonds while equity markets face pressure from slowing earnings growth.
