Uday Kotak, the founder of Kotak Mahindra Bank, expressed concerns about India's ability to withstand potential shocks from foreign portfolio investor (FPI) selloffs. During the CNBC-TV18 Global Leadership Summit, he highlighted the impact of October's FPI selloff, which resulted in a 6% decline in the Nifty 50 and BSE Sensex as $11.2 billion exited the market.

Kotak questioned whether India could handle a larger outflow, suggesting that a 5-10% departure of the approximately $930 billion held by FPIs could have severe market repercussions. He emphasized the need for India to enhance its competitiveness in an increasingly protectionist global trade environment, as the stock market's resilience is tested.

The October selloff was the Nifty's worst monthly decline since the pandemic began in March 2020, leading to discussions about the country's macroeconomic stability and its capacity to handle significant capital flight.