International money managers have withdrawn more than Rs 1 lakh crore from Indian equity markets since July. Poor company profits, expensive stock prices, and trade policy worries from America drove this massive exit. Local investment firms stepped in to balance the damage by purchasing Rs 5.37 lakh crore worth of shares. Market experts believe foreign sellers may slow their retreat as India cuts interest rates and simplifies tax rules.
Stock valuations in India remain higher than competing Asian markets like China and South Korea. This price gap pushed international funds toward cheaper alternatives that performed better this year. Corporate earnings grew at single-digit rates, disappointing investors who expected stronger returns. Analysts predict modest profit growth of 8 to 10 percent next fiscal year, followed by a robust 15 percent expansion in the following period. These improvements could restore confidence among global investment managers.
Stock valuations in India remain higher than competing Asian markets like China and South Korea. This price gap pushed international funds toward cheaper alternatives that performed better this year. Corporate earnings grew at single-digit rates, disappointing investors who expected stronger returns. Analysts predict modest profit growth of 8 to 10 percent next fiscal year, followed by a robust 15 percent expansion in the following period. These improvements could restore confidence among global investment managers.
