The Economic Times

Explained: Why global brokerages are hitting panic button on India. FII exodus, oil shock ringing alarm?

Equity market has shifted sharply from optimism to crisis mode, marked by a record $13 billion FII outflow in Marchthe worst ever. The sell-off has been driven by a surge in oil prices following Gulf tensions, with Brent crude jumping over 50%, worsening inflation, trade deficits, and corporate margins. Existing weaknesses like a weak rupee, sluggish earnings, high valuations, and global trade pressures have compounded the impact, turning investor sentiment from an India premium to an India exit.