Foreign investors have started to set prices on a slower rebound for Indian stocks this year out of concern that the relatively small stimulus the government has provided to businesses and consumers will leave the economy behind its main rivals.
Mumbai's equity indices have bounced around 43% since they plummeted to a four-year low in March, as the huge cheap capital flows provided by world central banks when COVID-19 hit made stocks attractive with great discounts.
Despite having invested around $ 1.98 billion in Indian stocks since the end of March, foreign investors remain net sellers this year with outflows of $ 2.75 billion. In March alone, they pulled out $ 8.35 billion, according to data from the stock exchange.
"There are a lot of macro issues that make India a little less easy," said Rashmi Gupta, emerging markets (EM) portfolio manager at JP Morgan Private Bank in New York.
"It has a very fine line to walk as it has a higher debt-to-GDP ratio (gross domestic product) and doesn't have much room compared to some other emerging economies in terms of its ability to provide fiscal stimulus," he said. .
From News 18
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