India Remains Attractive to Foreign Investors

29 Nov 2024 , 02:18 PM

Despite record outflows from local shares last month, which indicate promise in certain sectors, foreign investors are still seeing possibilities in India.

Based on statistics from the National Securities Depository Ltd., equities in the industrial, healthcare, and telecommunications sectors have each seen net inflows of roughly $3 billion this year as of November 15. This contrasts with the period’s total withdrawals of over $2 billion, which came after an extraordinary selling frenzy in October.

As the momentum that propelled the overall market to a record high in September has been undermined by slowing earnings growth and a spike in share supply, global funds have piled into industries with strong growth potential while reducing exposure to industries like banks, consumer, and energy — the 2024 stragglers.

The prognosis for infrastructure companies has improved due to Prime Minister Narendra Modi’s initiatives to stimulate manufacturing, while telecom companies are profiting from a price increase as fierce competition for subscribers lessens.

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