[Surge in oil prices weakens the effectiveness of policies and foreign investment withdraws from the Indian market again] September 30th: The surge in oil prices and rising global yields have caused overseas investors to sell Indian assets again, and the recent momentum of foreign investment repatriation has been hit. Data show that global funds have sold a net US$2.1 billion of Indian stocks this month, after buying them for two consecutive months. Indian sovereign bonds included in the index have also seen outflows. Foreign investors have sold US$1.1 billion this month, which will be the largest monthly outflow since March this year based on current trends. This comes after India's sovereign bonds recorded record inflows in June. Rising oil prices have weighed on the rupee and added to inflationary pressures, while India's economy is highly dependent on energy imports, constraining policy space. Gautam Chhaochharia, global head of markets at UBS India, said oil prices will be a key factor in determining whether India will see another outflow of foreign capital. UBS expects that the Indian stock market will remain range-bound in the short term, and factors such as valuation levels, increased stock supply, and high oil prices may limit market upside.