HKG:1099 News 31 January 2026

January 31, 2026, 10:14 PM EST. Foreign institutional investors (FIIs) have withdrawn $23 billion from Indian equities since 2025, intensifying pressure on Finance Minister Nirmala Sitharaman's Budget. The rupee's depreciation and subdued post-tax returns have made Indian stocks less attractive compared to safer assets abroad. Experts highlight potential tax relief for foreign portfolio investors (FPIs) as a key Budget highlight, which could support equity inflows. Jefferies considers such relief a positive but not guaranteed. Morgan Stanley suggests broader reforms, including easing buyback taxes and enhancing Gift City incentives. Analysts urge cutting the 12.5% long-term capital gains tax for foreign investors and boosting earnings growth at India Inc to justify high valuations. Overall, investors seek measures balancing tax benefits with corporate earnings to halt the outflow and attract sustainable foreign investments.