Foreign investors have withdrawn $21 billion from Indian stocks in the last two months, tracking toward the worst year since India opened markets to overseas investors in 1993. The outflow is driven by the ongoing Iran war pushing up oil prices, geopolitical uncertainty, and aggressive interest rate hikes from the U.S. Federal Reserve making dollar-denominated bonds more attractive than emerging market equities. India's forex reserves remain solid at $690.69 billion but declining, and economists expect the current account deficit to widen further this year as oil import costs stay elevated.