Nearly 60% of foreign inflows into India-focused funds have been withdrawn since the 2024 peak, a report shows. The outflow pressures HDFC Bank, Infosys, and Wipro as foreign investors retreat.
Nearly 60% of the foreign inflows that poured into India-focused funds during the 2024 rally have been pulled back, a report showed. The withdrawal has erased most of the gains in foreign portfolio investment that drove Indian equities to record highs last year.
The selling has been broad, hitting large-cap stocks and mid-caps alike. HDFC Bank, Infosys, and Wipro – among the most widely held Indian stocks by foreign funds – have all seen their share prices decline from 2024 highs. AlphaScala's proprietary scores reflect the pressure: HDFC Bank scores 47 (Mixed), Infosys 57 (Moderate), and Wipro 46 (Mixed).
Foreign investors have been net sellers of Indian equities for several months. They cite high valuations and a stronger dollar. The latest data confirms the retreat is not a short-term shift.
The report did not specify when inflows might resume. The outflow trend, if it continues, could keep Indian indices under pressure through the coming quarters.
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