New Delhi, Feb. 24 -- It appears that overseas investors are reluctant to reverse their bearish stance on Indian stocks, as they continue to be net sellers, withdrawing billions of rupees from the exchanges in 2025 so far amid concerns over valuations, economic growth, and global trade uncertainties.

Capital flight is shifting from some emerging markets, including India, back to the U.S., fueled by optimism that Donald Trump's economic policies could strengthen the U.S. economy. However, at the same time, concerns are mounting that his trade actions might lead to short-term inflationary pressures. As a result, investors are rebalancing their portfolios, reducing exposure to EMs and investing in U.S. bonds and equities.

Uncertainty surro...