Business · India Bureau
Tech stocks shine as foreign investors pull nearly ₹48,000 crore from markets
Foreign portfolio investors have accelerated their exit from Indian equities, offloading shares worth nearly ₹48,000 crore in the first half of October—more than double the previous fortnight's outflows. Information technology stocks emerged as a rare bright spot, attracting inflows of ₹2,599 crore during the period.
LSN India ·
The sharp increase in foreign investor selling underscores growing caution in global markets, with overseas funds reducing their exposure to Indian equities at a pace not seen in recent weeks. The ₹47,955 crore in outflows during the first half of October marked a significant acceleration from the preceding two-week period, signalling heightened concerns among international investors.
Amidst the broader retreat, India's information technology sector proved resilient, bucking the trend to attract modest inflows. The ₹2,599 crore in foreign buying in IT stocks reflected continued confidence in India's software and services companies, which remain valued for their global revenue streams and operational flexibility.
The divergence between the overall market sentiment and IT sector performance highlights how selective foreign investors have become in navigating current market conditions. While macroeconomic headwinds and global interest rate uncertainties have prompted overseas funds to trim their India exposure, the relative stability and earnings potential of technology companies continue to draw interest.
Foreign portfolio investment flows have become increasingly volatile in recent months, reflecting swings in global risk appetite and monetary policy expectations. India's equity markets, while offering long-term growth potential, remain sensitive to broader shifts in international investor behaviour.