India Struggles to Shake Off Pessimism After $1.3 Trillion Stock Rout
Global fund managers are in no rush to load up on Indian stocks even after an unprecedented losing streak has lowered equity valuations, as the market is still grappling with challenges posed by an economic slowdown, profit downgrades, and potential US tariffs. Overseas investors have pulled almost $15 billion from local shares so far this year, putting outflows on track to surpass the record $17 billion registered in 2022. The selloff has wiped out $1.3 trillion from India’s market value.
- The reversal of stock rotation from China to India highlights the complexities of emerging markets and how investor sentiment can shift rapidly in response to economic and policy developments.
- What role will the Indian government's plans for infrastructure development, such as the Bharatmala Pariyojana, play in reversing the country's economic slowdown and restoring investor confidence?