Global investors are actively selling off Indian stocks, instead increasing investments in Chinese stocks. Nearly $29 billion has been withdrawn from the Indian market in the last six months, a record capital outflow. About this informs Reuters.
Foreign investors have pulled about $29 billion from India’s stock market since October, a record six-month outflow, as investors lose confidence in a market that was previously seen as stable and attractive for investment.
Due to high inflation and rising interest rates, India’s NSE stock index has fallen 13% from its September high, shedding $1 trillion in market capitalization.
Instead, the Hang Seng index in Hong Kong, where the largest Chinese companies are concentrated, has risen by 36% since the end of September. Analysts explain this with the growing interest in the field of artificial intelligence, in particular after the Chinese startup DeepSeek entered the technology market. Slowing corporate earnings and India’s slowest economic growth in four years are forcing investors to rethink their strategies.
At the same time, US crude oil exports to India reached their highest level in two years in February. This took place against the background of Washington’s tightening of sanctions against Russian suppliers and vessels that transport oil from Russia and Iran.
