New Delhi, Oct. 19 -- Finance Minister Nirmala Sitharaman has attributed part of the recent weakness in Indian equities to the ease of selling holdings, while maintaining that the country's economic fundamentals remain sound.

Speaking on the sidelines of the IMF and World Bank annual meetings, Sitharaman told CNBC that easy access to liquidity was enabling investors to exit markets more readily. She also flagged sustained capital outflows as a key challenge for India in 2027.

Domestic equity benchmarks have declined nearly 12 per cent so far this year amid trade uncertainty and geopolitical tensions, despite continued economic growth.

Foreign Capital Outflows Raise Concerns

Sitharaman said global investment flows towards artificial in...