Investors Sell Indian Stocks, Turn to Other Asian Markets
AnalystDigital Finance
A Reuters survey found that analysts expect the Indian stock market to fall below its early 2026 levels by mid-next year, marking the third consecutive quarter of downgraded outlooks for Indian equities. Meanwhile, foreign investors are turning to other Asian markets. Indian stocks have plunged more than 7% this year and are on track for their worst annual decline in over a decade, contrasting with strong rallies in Japanese, South Korean, and Taiwanese markets driven by the AI boom. The survey of 28 analysts conducted between August 13-26 predicts the Nifty 50 index will rebound 5.0% from its closing level of 24,334.55 points to 25,556 points by the end of 2026, and 26,300 points by mid-2027. The Sensex is expected to reach 81,608 points by the end of 2026. Foreign investors have sold about 2.4 trillion rupees, or $25.1 billion, worth of Indian stocks this year, shifting toward AI-related markets, which has also led to a 6% depreciation of the rupee against the U.S. dollar. A Bank of America survey also found that India is the least favored market among fund managers in Asia, with 32% holding a net underweight position. In contrast, Indonesia has gained confidence, with the Jakarta Composite index surging over 20% from its June low.
