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The FPIs were somewhat spooked by the changes to the DTAA between India and Mauritius, with greater scrutiny applicable now on investments into India through Mauritius.
There is now a Principal Purpose Test (PPT) that will examine whether duty benefit was the principal purpose of the transaction or arrangement. The spiralling inflation in the US has also triggered spike in bond yield (resulting in sale in the Indian market). The geopolitical concerns revolving around situations in the middle east and Iran/Israel has also somewhat contributed to this fleet of capital. 
I feel this is a temporary phenomenon, and the domestic institutional investors (with their healthy liquidity) and also the HNIs will continue to drive the momentum in the Indian market going forward.  The macro factors also look good, with the ongoing Indian elections signalling policy stability and large companies returning healthy earnings.

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