economy
Indian stock exchange CEO says domestic investors saved markets from ‘freefall’
Domestic investors have kept Indian equity market from a sharp correction, as foreign investors have turned bearish.
TL;DR
- Domestic investors prevented a 'freefall' in the Indian equity market as foreign investors sold billions.
- 35 million new Indian investors registered via BSE in the last year.
- Domestic institutional investors invested a net $91 billion in equities last year, offsetting foreign outflows of $35 billion.
- Foreign investors remain bearish due to weak earnings and the economic impact of rising global oil prices.
- India's lack of a significant AI ecosystem is dampening foreign investor sentiment, unlike AI-focused markets like Korea and Taiwan.
- Despite global factors, domestic capital flow into equities remains strong, with significant inflows into mutual funds.
- The Indian benchmark index, BSE Sensex, is down 11% year-to-date, making it one of Asia's worst performers.