Foreigners turn cautious on India stocks as selling crosses $3 bn

By Ashutosh Joshi

Foreign investors’ January sale of Indian stocks reached its largest monthly total in a year, as global funds take profit from a recent rally.  
 

Global funds took out more than $3.1 billion from local shares last month, according to data compiled by Bloomberg.

In 2023, global investors bought $21.4 billion of Indian shares on a net basis, the largest total in three years, with over 40 per cent of foreign inflows coming during the last two months of the year. This helped benchmark S&P BSE Sensex stretch its yearly gain to almost 19 per cent, its eighth consecutive annual advance.  

Indian stocks have benefited from global funds’ waning appetite for China. But Beijing’s recent attempts to support its markets have made some investors contemplate a change in strategy, especially given high valuations in India.