According to CoinMeta, soaring oil prices and rising global yields have prompted overseas investors to sell Indian assets once again, and the recent trend of foreign capital flowing back has been hit. Data shows that global funds have net sold $2.1 billion in Indian stocks this month, after purchasing for two consecutive months prior. There has also been a outflow of funds from Indian sovereign bonds included in indices, with foreign investors selling $1.1 billion this month, which, at the current rate, could result in the largest monthly outflow since March of this year. Rising oil prices are dragging down the rupee and exacerbating inflationary pressures, and since the Indian economy is highly dependent on energy imports, policy options are thus limited. Gautam Chhaochharia, head of UBS' Global Markets for India, stated that oil prices will be the key factor determining whether there will be another outflow of foreign capital from India. UBS expects that the Indian stock market will continue to fluctuate within a narrow range in the short term, with factors such as valuation levels, increased stock supply, and high oil prices potentially limiting the market's upside potential.