CDSL recorded net foreign portfolio investor selling of ₹47,955 crore ($5.044 billion) in Indian shares from Oct. 1-15, as matched-date index data showed India remained much more expensive than emerging-market peers.
As of Sept. 30, the MSCI India Index had a forward earnings multiple of 18.61 times, against 9.72 times for the MSCI Emerging Markets Index. Calculated from those figures, India’s multiple was about 91.5% higher, or roughly 1.9 times the emerging-market measure.
CDSL’s sector data showed financial services had the largest net outflow, at ₹8,634 crore. Fast-moving consumer goods followed with ₹8,172 crore in outflows, while information technology recorded net buying of ₹2,599 crore.
In a separate report, The Economic Times put the dollar-denominated MSCI India Index at about 18.5 times forward earnings, its lowest level since May 2020. The newspaper compared that reading with 22.5 times at the start of 2026 and a 10-year average of 19.7 times. MSCI’s published 18.61 figure is dated Sept. 30.
The Economic Times cited foreign selling, rupee weakness, higher crude prices and rising U.S. bond yields as pressures on Indian shares. Vivek Iyer, partner and chief investment officer at Rational Equity Asset Management, said costlier crude could lead to further earnings-estimate cuts. He identified oil marketers, paint makers, automakers, airlines, cement companies, consumer-discretionary businesses and lenders as exposed to crude or interest-rate risks.
Head of Equity and Portfolio Manager Saurabh Patwa of Quest Investment Managers said a fixed premium between India and emerging markets was difficult to define as fair value. He said stronger earnings growth over time could support a premium, while AI and data-center investment was creating near-term opportunities in South Korea and Taiwan.
