Foreign Investors Exit Indian Stocks

In a significant move, foreign investors have withdrawn a net $5.4 billion from Indian equities in January, marking the worst start to a year for the Indian stock market. This trend raises concerns over company earnings growth and sluggish consumption, despite robust inflows into mutual funds.

This massive sell-off by foreign investors has neutralized much of the support provided by mutual fund inflows, signaling potential further declines in Indian stocks. The situation underscores the challenges facing the Indian economy and its stock market in the near term.