Indian Stocks Edge Up After 8-Week Slide as $40 Billion Foreign Outflows Deepen Market Strain
Updated
Updated · BBC.com · Oct 5
Indian Stocks Edge Up After 8-Week Slide as $40 Billion Foreign Outflows Deepen Market Strain
3 articles · Updated · BBC.com · Oct 5
Summary
Sensex and Nifty have inched up since Monday after eight straight weekly losses—their longest losing streak in 25 years—even as India’s economy grows more than 7%.
Oil at $90-$100 a barrel and US bond yields above 5% have squeezed Indian equities by lifting inflation and rates, pushing foreign investors toward safer assets.
Foreign institutional investors have withdrawn about $40 billion over the past two years, while a weaker rupee has left the Nifty delivering only 6% annualized dollar returns over the past decade.
Domestic money has cushioned the fall: mutual-fund assets have climbed to about $900 billion from $125 billion in 2016, and 150 million Indians now invest in stocks or funds.
Even after the correction, Indian shares remain relatively expensive against AI-boosted rivals such as South Korea and Taiwan, while India still lacks globally competitive AI winners to draw foreign capital back.