Mumbai, Aug. 4 -- The worst phase of foreign portfolio investor (FPI) selling in Indian equities may be over, with Bank of Baroda Research saying the scope for any sharp decline in foreign equity flows appears limited as domestic economic fundamentals remain strong and investor sentiment improves.

In a report released on Tuesday, the bank stated that although foreign investors have remained net sellers in Indian equities for much of calendar year 2026 amid geopolitical tensions and global uncertainty, the outlook could improve in the coming months.

According to the BoB report, India's equity outflows were largely driven by the global risk-off environment following the outbreak of war earlier this year. However, market expectations have ...