US yields and rupee weakness may weigh on foreign investors’ Indian equity returns

A market commentator cites a 5% US 10-year yield, 3–5% rupee depreciation and a 1–2% long-term capital-gains tax impact to explain why foreign institutional investors might sell Indian equities. In this view, a 10–12% rupee return can resemble bond returns in dollars despite equity risk, and tax reform alone may not keep those investors in the market.