FIIs Follow the Rupee fall

When the rupee starts falling, FIIs don’t wait, they exit. It’s not panic, it’s pure math. Even if equities deliver decent returns, currency depreciation eats into gains, making India less attractive versus dollar assets. Add rising crude prices, a strong US dollar, and global risk-off sentiment — and capital naturally flows out. This creates a loop: FIIs sell → demand for dollars rises → rupee weakens further → more selling. It’s important to understand, such market moves aren’t always about weak fundamentals, but about currency pressure and global capital behavior. FIIs don’t chase stories, they chase stability.