breaking

Foreign Outflows From Indian Equities May Extend Into 2027

Overseas investors are expected to continue withdrawing from Indian stock markets into next year, as alternative Asian equities offer more attractive valuations and stronger profit growth, according to Bank of America Global Research.

The outflows reflect shifting investor sentiment. Indian equities face headwinds from limited exposure to high-growth sectors, patchy corporate earnings, and competitive bond yields that rival dividend payouts.

Other Asian markets are attracting capital by offering exposure to faster-growing industries. Natural gas demand is also rising across the region. Data centers and infrastructure supporting artificial intelligence require substantial power, driving energy consumption higher over the next decade.

The Nifty index has recently outperformed broader Asian benchmarks, though sustained foreign investor confidence remains uncertain.