New Delhi, June 13 -- It is one of the most challenging times for emerging market investors, thanks to geopolitical uncertainty, elevated bond yields, sticky inflation, and sharp currency volatility.

Foreign portfolio investors (FPIs) have been turning increasingly selective about where they deploy capital. For India, the question is whether it can still command premium attention amid rising global competition and shifting risk appetites?

FPIs have taken out over Rs.2.6 lakh crore from the Indian capital market till 12 June this year, as per NSDL data. In Indian equities, they have offloaded Rs.2.9 lakh crore year-to-date.

The major reasons behind this selloff have been the mismatch between earnings growth and valuations, the lack of A...