Foreign portfolio investors (FPIs) began 2026 by withdrawing Rs 7,608 crore from Indian equities in the first two trading sessions, continuing a trend from 2025's record Rs 1.66 lakh crore outflow. This caution is attributed to currency volatility, global trade tensions, potential US tariffs, and stretched valuations. However, market experts anticipate a potential shift, citing improving domestic fundamentals, robust GDP growth, recovering corporate earnings, normalized India-US trade relations, and more comfortable equity valuations as factors that could attract future inflows.