Foreign Investor Hesitation in India Amid Large-Cap Struggles
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
Foreign investors are hesitant to invest in India, with foreign portfolio investors selling $1.7 billion in direct Indian equities in September, bringing the total sold this year to nearly $26 billion. The Nifty 50 index has declined more than 10% since January. This trend contrasts with strong earnings growth observed in mid-cap companies.
From cnbc.com
Why it matters
Bernstein stated that large corporates in India are struggling to reinvent their businesses against technological disruption, leading to concerns that they do not offer high growth rates to justify high market valuations. Analysts suggest that a structural revival of foreign inflows depends on India building globally competitive industries in areas like advanced semiconductor manufacturing and energy storage.
From cnbc.com, rediff.com