20.3 C
Dubai
Friday, March 14, 2025
spot_img

Local funds cash out at record Indian stock highs

Domestic institutional investors are exiting Indian stocks at the highest rate in two-and-a-half years, signaling potential concerns about the sustainability of the market’s record rally, valued at $3.7 trillion.

In July alone, local funds, insurers, and banks have collectively sold a net worth of $1.1 billion in shares, marking the most significant outflow since February 2021. While these domestic institutions were substantial net buyers between December and March, they have mostly remained stagnant in their investments since then.

In contrast, foreign investors have emerged as the primary driving force in the world’s fifth-largest equity market, purchasing nearly $14 billion worth of Indian stocks throughout the year. Their interest has contributed to the NSE Nifty 50 Index’s impressive 17% rally from a recent low in March, propelling it to achieve a series of new all-time highs.

Despite global institutions remaining optimistic about India’s economic prospects and corporate earnings, the outflow of funds from local sources has raised caution among market participants. Technicals and options data are showing warning signs, and some small-cap stock funds have had to suspend accepting fresh investments due to record inflows.

Next Article

Related Articles

UAE Green Milestone: Vopak Horizon Fujairah Completes First Bio-Bunker Fuel Supply, Paving the Way for Sustainable Shipping

UAE Green Milestone: Vopak Horizon Fujairah has successfully completed its first bio-bunker fuel supply operation in the UAE, marking a significant milestone in the...

Revolutionizing Real Estate: Nikhil Mawale’s Journey with PropertyDrone Realty

In a world where the real estate industry is often seen as traditional and resistant to change, Nikhil Mawale, the founder of PropertyDrone Realty,...

TOP FAMILY LAWYER IN THE UAE

TOP FAMILY LAWYER IN THE UAE Family Law is a branch of law that deals with the personal status matters of an individual. These laws...

UAE Sets Bold FDI Target: Aims for AED 240 Billion Inflows by 2031 to Drive Economic Growth

UAE has set an ambitious target to boost its annual foreign direct investment (FDI) inflows to 240 billion dirhams ($65.35 billion) by 2031, nearly...

Ayush Nambiar: Steering the Nambiar Group with Relationships, Ethics, and Vision 2047

In a world where businesses often prioritize systems over people, Ayush Nambiar, the Managing Director of the Nambiar Group, stands out as a leader...

Latest Articles