India Withstands FPI Outflows as Strong Fundamentals Outweigh US Yield Impact

India has outperformed regional markets despite recent FPI outflows due to strong economic fundamentals.

Rise in US bond yields often leads to foreign outflows from India, but current outflows appear limited.

FPI sensitivity to US yields has increased over the past decade.

FIIs are still underweight on Indian equities compared to historical averages.

Domestic institutional investors can likely cushion volatility until FPIs return.