Stories
India Struggles for Foreign Investment as High Oil Prices Drive FII Caution
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CNBC TV18•06-10-2026, 09:23
India Struggles for Foreign Investment as High Oil Prices Drive FII Caution
- •India continues to face foreign investor outflows driven by rising oil prices and high crude import dependency.
- •EPFR Global Director of Research Cameron Brandt highlights that oil prices have become a critical factor in global asset allocation.
- •Global fixed-income funds maintain strong momentum with weekly inflows of 15 to 20 billion dollars despite rising sovereign debt concerns.
- •Brazil-focused funds see stronger investor interest following positive electoral sentiment for Jair Bolsonaro.
- •Precious metals experience solid but moderating investor interest, with gold funds maintaining a steady streak of weekly inflows.
Key Questions Answered
India continues to face foreign investor outflows because higher oil prices and the country's heavy dependence on crude imports make it less attractive compared to other emerging markets.
Global fixed-income funds continue to maintain strong momentum with robust weekly inflows running between $15 billion and $20 billion, putting bond funds on course for another record-setting year.
Investor interest in precious metals remains positive but has moderated. Gold funds continue to receive steady inflows though the pace has slowed, while silver fund flows have been more volatile with occasional strong inflows.
