The condition of Indian economy is deteriorating. There is inflation. Investors are losing trust on Indian economy and this can be understood from the amount of money withdrawn by them.
There is more money withdrawal than that being invested from abroad. Foreign portfolio investors have withdrawn around Rs. 25,000 crore from Indian market ; as reported by live mint. This amount was withdrawn only within one month, i.e., in Ocotber 2018.
During 2017-18, foreign investors had invested around Rs. 21,000 crore in Indian markets. This implies that more money was withdrawn than deposited. Indian money is devalued in comparison to dollar which is leading to inflation.
Prices of petrol-diesel are constantly rising and expensive transport is also adding to the problem. Due to inflation, demand has fallen in the markets. At the same time, market condition is tensed due to income crisis in large companies like ILFS. GST and demonetisation have created a hurdle in the economic growth of the country. Due to this, the stock market is in poor condition.
More than Rs 13 lakh crore of investors have been lost in the stock market in September 2018. All this is leading to distrust of foreign investors in Indian markets; and they are withdrawing their money. Goverment has proved that its unable to tackle this stressful situation.