New Delhi, March 31 -- For foreign investors backing Indian equities, the financial year 2026 was one they would rather forget. It was a period dotted with global disruptions, starting with US-led tariff uncertainties and ending amid the US-Israel-Iran war. Each external shock raised risks to India Inc.'s headline earnings and triggered a sharp exodus of overseas capital throughout FY26, making market flows more volatile and returns less predictable.

Foreign portfolio investors (FPI) turned the most bearish on India in 34 years, with net outflows surging 42% year-on-year to nearly Rs.1.8 trillion in FY26-the highest since 1992, when data first became available, according to Mint's analysis of National Securities Depository Ltd data. The ...