The past few years have seen India emerge as a preferred investment destination, thanks to its breakneck economic growth, surging corporate profits and a broader shift away from China. But some of that shine is now starting to fade as equity valuations have become among the priciest in the world, the pace of expansion in the economy and earnings is slowing and Chinese stocks are staging a comeback following a stimulus blitz since late September.
Foreign investors are souring on India’s stock market, selling a record amount of shares amid signs the South Asian nation’s post-pandemic economic boom is losing steam.
Global funds pulled out nearly US$11 billion ($14.5 billion) on a net basis in October, helping drive the MSCI India Index toward a so-called technical correction on Tuesday. Sustained foreign investor outflows could act as a drag on near-term stock performance, according to Citigroup Inc.
