New Delhi, May 10 -- Foreign investor selling in Indian equities may be nearing exhaustion after record outflows in recent months, but a meaningful return of foreign capital could still take time due to expensive valuations, weak earnings visibility and global investor preference for North Asian markets, according to a Goldman Sachs India strategy report.

In its report titled "Outflows Fade, But Re-entry Waits," Goldman Sachs said foreign ownership in Indian equities has fallen to a 14-year low and slipped below domestic institutional ownership for the first time in more than two decades.

"Foreign ownership in equities dropped to a 14-year low in 1Q CY26, and slipped below domestic institutions for the first time in over two decades," t...