New Delhi, Sept. 8 -- Foreign institutional investors (FIIs) have been aggressively selling Indian stocks in the cash segment since July. From July 1 to September 8, they offloaded Indian shares worth over Rs.1 lakh crore on stretched valuations, weak earnings and uncertainty over Trump tariffs.

Foreign capital outflow is the key reason why the Indian stock market has been stuck in a range since July, despite robust buying by domestic institutional investors (DIIs) amid a healthy macro outlook of the country. Domestic institutional investors (DIIs) have been consistently net buyers in the cash market since August 2023.

The relentless selling of FIIs can be attributed to the following five main factors:

Overall weak earnings growth for ...