New Delhi, Aug. 28 -- It appears that the sentiment of overseas investors continues to remain bearish on domestic equities, as they have been wielding their selling weapon aggressively in the Indian stock market, pulling out another Rs.34,733 crore through exchanges so far in August after withdrawing Rs.47,666 crore in July.

Higher tariffs on India, lofty valuations, and lack of earnings visibility are currently driving FPIs away from local equities, prompting them to look instead at other Asian markets where valuations appear more attractive compared to India.

FPIs have also been sellers in the bond market, though they continue to invest through the primary market/QIP route. This clearly suggests that they view Indian equities as more ...