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Foreign investors rid themselves of $4.5 billion worth of Indian stocks in January, the largest flight since the COVID War began, reversing gains that the flagship Sensex index had made in the early days of this year.
“The Ukraine crisis and impending Federal Reserve rate hikes have made more opportunistic global investors nervous, triggering a risk-off move,” Praveen Jagwani, CEO of asset manager UTI International, explained to the Financial Times.
January was the fourth consecutive month that saw net outflows of foreign capital from Indian equities, raising the total taken out to $9.3 billion, approaching the record $9.9 billion that emigrated during the Great Recession.
TRENDPOST: Before the COVID War began in 2020, India had suffered six consecutive quarters of declining gross domestic product… its longest downward spell in 23 years. And as economic conditions declined, there were massive labor protests.
With the COVID War winding down and India opening up, the Sensex rose 22 percent last year. Thus, with that kind of spike, minus estimates for continued strong economic growth, market players are grabbing their profits.