Since January, key benchmark indexes have slipped nearly 12 per cent, according to LSEG data, even though the country’s economic growth has been resilient amid trade uncertainty and geopolitical shocks
Our Bureau Published 20.10.26, 09:10 AM
Nirmala Sitharaman in New Delhi on Monday. PTI
The high degree of liquidity in India’s equity market has provided easier exits to foreign portfolio investors, finance minister Nirmala Sitharaman has said.
“Because of the ease of liquidity, ease of availability, people are even exiting easily”, Sitharaman told CNBC on the sidelines of the IMF-World Bank meetings in Bangkok on Friday. However, the fundamentals of the Indian economy are “fine”, she said.
Since January, key benchmark indexes have slipped nearly 12 per cent, according to LSEG data, even though the country’s economic growth has been resilient amid trade uncertainty and geopolitical shocks. India has been hit with record outflows by foreign investors from its equity markets.
Foreign portfolio investors have sold direct Indian equities of over $33 billion so far this year, according to NSDL. India is seen by some portfolio managers as an anti-AI trade, while markets like Taiwan and South Korea, with AI champions, have attracted strong investment flows.
Still, domestic capital continues to flood the market. Indian equity mutual funds have recorded net inflows every month since March 2021, according to data released by Association of Mutual Funds.
Sensex drops 876 pts
Benchmark equity indices ended sharply lower on Monday after a two-day rally, with the Sensex tumbling 876.37 points and the Nifty dropping to 22,888.95, dragged by private lenders HDFC Bank and Axis Bank, and weak global trends.
The 30-share BSE Sensex tumbled 876.37 points, or 1.17 per cent, to settle at 73852.90. During the day, it crashed 1020.73 points, or 1.36 per cent, to 73,708.54. The 50-share NSE Nifty dropped 257.20 points, or 1.11 per cent, to end at 22888.95.
Shares of Axis Bank fell over 4 per cent on Monday after its second-quarter earnings failed to enthuse investors. The stock dropped 3.85 per cent to end at ₹1,236.90 on the BSE. During the day, it tumbled 4.77 per cent to ₹1,225. At the NSE, the stock declined 4.18 per cent to settle at ₹1,236. The private lender’s market valuation fell by ₹15,406.56 crore to ₹3,85,154.05 crore.
UltraTech Cement, Infosys, Bajaj Finance, Trent, NTPC and HDFC Bank were also among the major laggards.
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