Mumbai, June 25 -- India's financial markets are structurally transitioning from foreign dominance into rock-solid domestic hands, successfully shielding the local economy from severe downside risks despite a prolonged three-year selling streak by Foreign Portfolio Investors (FPIs).

Speaking to ANI in Mumbai on Thursday, Unmesh Sharma, Senior Executive Vice President at HDFC Securities, broke down the mechanics behind the multi-year foreign capital exodus, tracking it back to global asset allocation and recent geopolitical skirmishes.

"Look, you have to look into the reasons in the last three years why FPIs have been selling India--the first part was actually switching into other markets because some only markets, like Korea and China, ...