IndiaPosted at: Nov 3 2026 2:41PM


Congress questions Sitharaman’s priorities as foreign investors pull out record capital

New Delhi, Nov 3 (UNI) The Congress on Tuesday took aim at union Finance Minister Nirmala Sitharaman over her repeated exchanges with Leader of the Opposition in the Lok Sabha Rahul Gandhi on social media, questioning her priorities at a time when foreign investors are withdrawing substantial amounts of money from Indian equity markets and overseas ownership of listed companies has slumped to its lowest level in nearly 15 years.
Congress leader Pawan Khera sharpened the attack in a post on X, remarking, “And meanwhile, India's Finance Minister is busy honing her writing skills on X, responding to Rahul Ji with long-winded posts that beat around the bush.”
Khera's criticism comes against the backdrop of mounting concerns over the sustained withdrawal of foreign portfolio investment (FPI) from Indian equities, raising questions about market valuations, investor sentiment and the country's attractiveness as an investment destination.
According to a reported analysis of 5,638 companies listed on the Bombay Stock Exchange, foreign portfolio investors held just 14.02 per cent of their shares at the end of the September quarter of 2026, compared with a peak of 20.09 per cent in December 2020. Foreign ownership has reportedly fallen to multi-year lows in nearly 70 per cent of India's top 100 companies, including major banking, financial services and information technology firms.
The pace of foreign selling has intensified in recent months. FPIs reportedly withdrew Rs 34,843 crore from Indian equities in October, following an outflow of Rs 35,861 crore in September. This took their cumulative net withdrawal during 2026 to approximately Rs 2.95 lakh crore. Although foreign investors returned as net buyers in the final week of October, purchasing equities worth around Rs 6,300 crore, the broader trend continues to concern market participants.
Several factors have contributed to the outflows, including elevated US bond yields, a stronger dollar, geopolitical uncertainties, rising crude oil prices and relatively expensive valuations of Indian equities. The global investment shift towards artificial intelligence and semiconductor-related opportunities has also benefited markets such as Taiwan and South Korea, which offer greater exposure to technology hardware manufacturing.
The depreciation of the rupee has further complicated the investment outlook. Trading at around Rs 94.87 against the US dollar on Tuesday, the Indian currency's weakness has added to the concerns of overseas investors, as it erodes dollar-denominated returns and makes Indian assets relatively less attractive.
However, substantial domestic institutional investment has provided an important cushion to the equity markets, helping absorb a significant portion of foreign selling. Domestic institutional investors reportedly purchased equities worth Rs 8.09 lakh crore during FY26, offsetting foreign institutional investors' net selling of approximately Rs 1.81 lakh crore. Monthly systematic investment plan contributions also averaged a record Rs 32,087 crore during the financial year, reflecting the growing role of domestic household savings in supporting the markets.
Meanwhile, the political sparring between Rahul Gandhi and Sitharaman has continued over economic and corporate issues. The Finance Minister recently rebuked Gandhi over his allegation that the Tata Group was being “criminally destroyed”, accusing him of politicising commercial and legal matters. The two have also exchanged accusations over the proposed disinvestment of IDBI Bank to Canadian investor Fairfax.
Khera's latest intervention has brought these exchanges into sharper political focus, juxtaposing the Finance Minister's social media engagements with the challenges confronting the economy and financial markets.
While declining foreign ownership does not necessarily signify a loss of confidence in India's long-term economic prospects, sustained capital outflows, currency depreciation and concerns over equity valuations present significant challenges. The growing strength of domestic institutional investment has so far prevented foreign selling from exerting a more severe impact on the markets. However, whether domestic savings can continue to compensate for weakening overseas participation and sustain market valuations remains a critical question for policymakers and investors alike. UNI SKA AAB
Tags: #Congress questions Sitharaman’s priorities as foreign investors pull out record capital
More News

Jantar Mantar should never have been a designated protest venue, no fundamental right to protest at a particular site: Delhi Police tells SC

04 Nov 2026 | 12:24 AM

New Delhi, Nov. 3 (UNI) Delhi Police on Tuesday told the Supreme Court that Jantar Mantar should not have been a designated protest venue as it is a public road with limited capacity to accommodate large gatherings and lies close to sensitive Central government offices, institutions and foreign embassies. It also maintained that there is no fundamental right to protest at a particular site.

see more..

Public-private partnership essential to making Delhi a better medical hub: CM

03 Nov 2026 | 11:04 PM

New Delhi, Nov 3 (UNI) Delhi Chief Minister Rekha Gupta on Tuesday said the government is working to strengthen healthcare facilities across the national capital, with a focus on disease prevention and providing affordable medical services to residents.

see more..

NEET-PG may shift from percentile-based qualifying system to rank-based merit system

03 Nov 2026 | 10:36 PM

New Delhi, Nov. 3 (UNI) A 12-member expert committee set up to review the NEET-PG admission system has recommended replacing the existing percentile-based qualifying system with a rank-based merit system, a proposal that has received in-principle approval from the National Medical Commission.

see more..

Congress accuses EC of ‘Word Games’ over Form 6, demands halt to SIR

03 Nov 2026 | 10:30 PM

New Delhi, Nov 3 (UNI) The Congress on Tuesday stepped up its confrontation with the Election Commission of India (ECI) over the ongoing Special Intensive Revision (SIR) of electoral rolls, accusing the poll panel of using “word games” to defend a flawed exercise that, according to the opposition party, deletes existing voters first and subsequently asks them to seek re-enrolment as new electors.

see more..

Supreme Court restores registration of Crystal Crop protection’s insecticide, sets aside Delhi High Court order

03 Nov 2026 | 10:25 PM

New Delhi, Nov 3 (UNI) The Supreme Court has restored the registration certificate granted to Crystal Crop Protection Ltd for the import and manufacture of the insecticide Halosulfuron methyl, setting aside a Delhi High Court judgment that had cancelled the registration.

see more..