Global funds have offloaded stocks valued over Rs 1 lakh crore across 18 sessions, per NSE data. Persistent selling due to growth concerns, Chinese economic measures, and valuation issues continues to negatively impact investor sentiments.
Provisional data from the NSE indicates a consistent offloading of stocks by global funds, spurred by concerns over slowing growth, improved conditions in China, and valuation issues. This prolonged selling streak is impacting investor confidence in Indian markets.
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In response, domestic institutions have acted as a buffer by purchasing stocks worth Rs 1 lakh crore during these dips. This strategic buying has helped prevent a more significant market downturn amidst rising valuation concerns relative to other emerging markets and China.
The outflow of foreign investment in October has been significant, marking the highest in Asia for the month. These outflows occur even as China implements various economic stimuli, including interest rate cuts and increased local government spending.
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Despite the outflow, the Indian stock market saw a rebound from a three-day decline, supported by gains in HDFC Bank Ltd. and Sun Pharmaceutical Industries Ltd. However, over the past 18 days, the NSE Nifty 50 and BSE Sensex have both dropped by approximately 7%.
The consistent sale of Indian stocks by foreign institutions has maintained pressure on the rupee, keeping it near record lows. Despite reaching an all-time low on October 11, the rupee opened flat at 84.08 against the dollar, indicating a tentative market stabilisation.
