Foreign Investors Pull $3.2 Billion From Indian Markets as Oil Rally Returns

Markets end September quarter in the red. Will Q3 bring relief or more pain?

Indian equities concluded their worst September quarter in more than a decade as surging crude oil and persistent foreign capital outflows dragged indices down. With lingering geopolitical risks and impending corporate margin pressure, analysts expect near-term market movement to remain constrained.

Global Investors Sell Indian Assets Amid Rising Oil Prices And Yields

The renewed selling is snuffing out a nascent recovery in foreign demand following an unprecedented stretch of underperformance by Indian stocks against regional peers.

Foreign Investors Pull $3.2 Billion From Indian Markets as Oil Rally Returns

The renewed rally in oil prices above $100 per barrel Brent has prompted foreign investors to pull money out of India’s stock and bond markets at the highest pace since March, when the start of the Iran war and the oil supply crunch in Asia launched a massive exodus from Asian assets. Following the largest outflows this year in March, India’s assets returned to booking inflows in April, May, June, and July, with a record of inflows in June, acco…

Foreign outflows from Indian stocks hit 6-month high in September on higher oil, yields

Foreign portfolio investors saw a notable outflow of $2.7 billion from Indian equities in September, marking the most significant withdrawal in the past six months. This trend has been driven by escalating oil prices and a tightening of global monetary policies. The rise in crude prices is straining India's current account and inflation expectations, which is weighing heavily on the rupee.

Foreign Investors Pull $3.2 Billion From Indian Stocks, Sovereign Bonds

September outflows accelerated as Brent crude returned above $100 a barrel, while higher global yields and a weaker rupee pressured Indian assets.