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2026-05-12 11:50:51
[Foreign investors withdraw $2 trillion from Indian stock market, making this year the worst year in history] (1) According to the Financial Times, investors have withdrawn 2 trillion rupees (about $21 billion) from Indian stock market in the past two months, making this year the worst year for foreign capital outflows since India opened to foreign investment in 1993. (2) This year’s sell-off of 2.06 trillion rupees is based on the net sell-off of 1.66 trillion rupees for the whole of last year. (3) A JM Financial report shows that foreign holdings in Indian stock market have now fallen to 14.7%, a 14-year low. (4) The Indian market is not attractively valued, and emerging market funds are mainly flowing to stock markets such as South Korea, where semiconductor giants are profiting from the artificial intelligence boom. (5) Although the funds are concentrated in a few companies, these companies have considerable weight in the capital market and influence on AI strategies. In contrast, India’s development is significantly limited due to the lack of representative AI concept leaders. (6) The sell-off is not limited to foreign investors. Since March 2025, the number of shares held by Indian retail investors has decreased by 9.2%.
