Five factors that could lure foreign investors back to Indian equities

Foreign portfolio investors sold more than Rs 25,000 crore worth of Indian equities in September as surging US bond yields, elevated crude oil prices and a weakening rupee reduced India's investment appeal.

Market analysts identify five conditions that could reverse the outflow: moderating US bond yields, cooling oil prices, rupee stability, strong second-quarter corporate earnings, and attractive stock valuations. These factors working in tandem could restore investor confidence in Indian markets.