India’s Finance Minister blames easy exits and excess liquidity for equity market's underperformance

India's Finance Minister has publicly addressed the recent underperformance of the country's equity markets, pointing to easy capital exits and volatile global liquidity conditions as primary culprits. Continued foreign institutional capital outflows remain one of the most prominent macroeconomic risks facing the Indian economy in 2027. Policymakers are increasingly concerned about how rapid shifts in global monetary policy and investor sentiment can disrupt local asset valuations. The government continues to evaluate strategies to stabilize domestic capital markets and encourage long-term retail participation over speculative hot money flows. Despite robust underlying economic growth, the susceptibility to international fund movements remains a persistent challenge for financial regulators. Analysts note that addressing these structural liquidity dynamics will be essential for restoring sustained upward momentum in local stock indices.