The Economic Times daily newspaper is available online now.

    Global funds sell most India stocks since 2022 post record rally

    Synopsis

    Global funds sold $2.4 billion of Indian shares on a net basis last week, the most since June 2022. They sold another $374 million on Tuesday, according to provisional data, as trading resumed after Monday’s surprise trading holiday announcement.

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    Indian stocks notched their biggest outflow of foreign investor funds in 19 months last week, as some profits were booked after a record-breaking rally.

    Global funds sold $2.4 billion of Indian shares on a net basis last week, the most since June 2022. They sold another $374 million on Tuesday, according to provisional data, as trading resumed after Monday’s surprise trading holiday announcement.

    India’s stock market valuation briefly topped that of Hong Kong earlier this week, at over $4.3 trillion. The lead was short-lived, however, as Hong Kong rebounded on expectations for a market rescue package from Chinese policymakers.

    FIIsBloomberg

    Foreign investors plowed more than $21 billion into Indian equities in 2023, helping propel the market to a series of new record highs. If the newfound optimism in Beijing’s support measures is sustained, it may dent allocations that India had been winning over China amid a host of issues for the latter from regulatory crackdowns to tensions with the US.

    India may be facing some regulatory headwinds of its own, which could spook overseas traders. The Securities and Exchange Board of India is committed to adopting stricter rules on foreign direct investment, despite opposition, the Economic Times reported, citing a person with direct knowledge of the matter.

    Disappointing results from some major Indian companies may further sour the mood on the local market as well. Large banks have signaled a potential slowdown in loan growth, while the country’s largest firm Reliance Industries Ltd. reported a negative impact from its traditional oil-to-chemicals business.





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    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

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