High valuation of Indian stocks

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印度股市遭遇三月以来最长跌幅,年内外资流出逼近历史最高
Hua Er Jie Jian Wen· 2025-09-30 09:21
Group 1 - Indian stock market is experiencing significant sell-off led by foreign investors due to concerns over US tariffs and weak corporate earnings, resulting in the longest consecutive decline in months for the benchmark index [1][4] - As of September 26, foreign investors have withdrawn a net amount of $16.8 billion from the Indian stock market this year, nearing the historical record set in 2022 [1] - The Nifty 50 index has seen a continuous decline for seven trading days, marking the longest losing streak since March [1] Group 2 - The sell-off has intensified this quarter amid unclear prospects for US-India trade agreements and high valuations in the Indian stock market, making the return of funds unlikely [4] - The Indian rupee has come under heavy pressure, becoming one of the worst-performing Asian currencies this year, with a depreciation of over 3.5% against the US dollar since 2025 [4] Group 3 - There is a stark contrast between the pessimism of foreign investors and the strong buying from domestic institutions, which have injected a record $66 billion into the market this year [7] - Despite the outflow and sell-off, the Nifty 50 index has recorded a 4.4% increase year-to-date, indicating potential for a tenth consecutive annual gain [7] Group 4 - While overall foreign capital is flowing out, there are signs of inflows in passive funds, particularly in exchange-traded funds (ETFs), which have seen net inflows for four consecutive weeks [8] - This suggests a rising demand for passive allocation to India, even as active fund managers reduce their exposure [8] Group 5 - The automotive sector is facing a slow recovery, with the Nifty automotive index experiencing its longest decline in over seven months [9] - In contrast, the engineering and capital goods sectors are gaining attention due to ongoing investments in renewable energy and grid upgrades, which are expected to sustain strong demand for related equipment [9]