In a sign that some foreign investors are losing their enthusiasm for India, they have pulled out more than $1 billion from Indian stocks in the past 12 trading sessions.
The Bombay Stock Exchange’s 30-share Sensex was essentially flat on Friday but is down 7.8% for the year through Friday, at 19,007.53. Foreign institutional investors have been net sellers over the last two-and-a-half weeks, with a net withdrawal of $1.17 billion
In contrast, last year foreign investors had poured $29 billion into Indian stocks according to data from the Securities and Exchange Board of India. These flows had helped push the Sensex to a 17% gain.
This year investors are increasingly concerned about India’s growth, and are at the same time encouraged by an improving economic outlook for the developed world.