Indian stocks on record losing streak as foreign investors pull billions

Indian stocks are on track for a historic 10-day losing streak, with the NSE Nifty 50 hitting a nine-month low after falling 0.7% on Tuesday. Global funds have pulled nearly $14 billion this year, spooked by slowing growth and high valuations.

“Investors are rattled,” said Daljeet Singh Kohli of Roha Asset Managers, noting the sharp sentiment shift since September, when India was a top pick for emerging-market investors. A rebound in Chinese stocks and a stronger dollar have also hurt Indian equities.

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Retail investors, who had remained resilient post-pandemic, are now feeling the strain, with their share of cash equities hitting a nine-month low in January.

Despite the slump, government efforts to boost consumption and trade talks with the US could provide support. Oversold technical indicators suggest a possible rebound, and Citigroup recently upgraded Indian stocks, citing better valuations. However, weak corporate earnings and India’s high valuation premium continue to weigh on investor sentiment.