Foreign investors’ January sale of Indian stocks reached its largest monthly total in a year, as global funds take profit from a recent rally.
Global funds took out more than US$3.1 billion ($4.14 billion) from local shares last month, according to data compiled by Bloomberg.
In 2023, global investors bought US$21.4 billion of Indian shares on a net basis, the largest total in three years, with over 40% of foreign inflows coming during the last two months of the year. This helped benchmark S&P BSE Sensex stretch its yearly gain to almost 19%, its eighth consecutive annual advance.
Indian stocks have benefited from global funds’ waning appetite for China. But Beijing’s recent attempts to support its markets have made some investors contemplate a change in strategy, especially given high valuations in India.
