Statsguru: Declining foreign ownership of the Indian stock market

Foreign ownership of the Indian stock market has declined to the lows last seen in 2012. The decline in foreign ownership comes amid rising domestic investor participation and lower relative attractiveness of the Indian market, despite higher earnings growth.
 

The average monthly flows into Indian markets were lower in the three months leading into the 2024 general elections than in the preceding six months. While external factors affect foreign flows, 2019 and 2014 witnessed higher foreign investment leading into elections (chart 1).

Domestic institutions have continued to buy. The gap in ownership between domestic and foreign investors has