Foreign portfolio investors are increasingly bearish on India's National Stock Exchange, as they have been net sellers of shares worth approximately Rs 3,500 crore. This trend reflects a broader shift among foreign investors, who are moving away from expensive Indian stocks in favor of new issues in primary markets. Year-to-date inflows into India's equity market total $2.6 billion, significantly lower than the $22 billion recorded in the previous year. In August alone, net outflows exceeded $1 billion, prompting concerns about the valuation of listed Indian companies. Meanwhile, the BSE SmallCap and MidCap indices have shown strong performance, rising 30.7% and 24.9% respectively in FY25, driven by robust domestic institutional investor inflows and resilient corporate earnings.