Global Funds Sell Indian Stocks for 22 Days: What’s Next?

Global funds sell Indian shares for 22 consecutive days amid earnings slowdown, causing a record drop in investment and a 9% decline in NSE Nifty 50 Index.

global funds selling streak in d street stocks hits record 22 days

Global money managers are selling Indian stocks more than ever before. This selling streak has now reached 22 days straight, breaking the old record from March 2020. On Monday alone, they sold around $416.5 million in Indian shares, adding up to about $9 billion in total sales during this period. This selling is happening even after the Indian government announced tax cuts worth over $11 billion in its federal budget.

According to Surendra Goyal, a strategist at Citigroup, foreign investment in Indian stocks is at its lowest point in 15 years. He noted that while continued selling by foreign funds might affect stock prices short-term, the new budget is good for growth. Since the end of September, foreign funds have sold over $21 billion in Indian stocks, which has caused the NSE Nifty 50 Index to drop more than 9% from its peak last year.

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