India's Finance Minister flags capital outflows as biggest risk for 2027 as stocks slide over 12%

Indian Finance Minister Nirmala Sitharaman has identified continued foreign capital outflows as one of India's biggest risks for 2027. Benchmark stock indexes NSE Nifty 50 and BSE SENSEX have fallen over 12% this year. Foreign portfolio investors have sold over $33 billion of Indian equities in 2026, with $4.1 billion withdrawn in September alone. The outflows have pressured the rupee, prompting the Reserve Bank of India to draw down nearly half of its $140 billion reserve buffer. Despite the selling, local institutions bought $8.1 billion in September, and equity mutual funds have seen net inflows every month since March 2021.