Foreign investors pulled more than $10bn out of Indian stocks in October, the biggest monthly exodus since the start of the coronavirus pandemic, on growing concerns that the market’s huge bull run may finally be coming to an end as the economy slows.
India’s two main share indices posted their worst monthly losses since March 2020 last month while the rupee fell close to a record low against the US dollar, as international interest in what was one of the hottest global markets cools.
Investors increasingly fear that Indian shares, which have more than tripled since March 2020, could now struggle in the face of weak corporate earnings, signs of an economic slowdown and moves by the central bank to curb exuberant retail lending.