Investors dump $2 bn worth of India stock, bond funds after Union Budget

Investors withdrew 172.2 billion rupees ($2.5 billion) from Indian stock and company debt mutual funds in February as concerns mount about the sustainability of returns.

Corporate bonds saw the biggest outflow in about two years after the government last month announced a bigger-than-expected borrowing plan in its budget, triggering a spike in yields. Equity indexes, which benefit from a stimulus, surged to a fresh record, prompting local investors to book profits.

“The period of unusual returns is getting over,” said Vidya Bala, co-founder at Chennai-based research firm Primeinvestor.in. 

“Also, many investors could be waiting it out till the