Foreign investors pulled more than $10bn out of Indian stocks in October, the biggest monthly exodus since the start of the coronavirus pandemic, on growing concerns that the market’s huge bull run may finally be coming to an end as the economy slows. India’s two main share indices posted their worst monthly losses since March 2020 last month while the rupee fell close to a record low against the US dollar, as international interest in what was one of the hottest global markets cools.
Data has indicated consumer confidence is slowing; Indian vehicle sales have dipped in recent months, while bellwethers such as Hindustan Unilever, the seller of Dove soap and Cornetto ice cream, had “muted” industry wide demand growth, chief financial officer Ritesh Tiwari told analysts. An inflection point for the glut of Indian companies coming to market in 2024 came with the highly symbolic $3.3bn listing of Hyundai’s Indian business on local stock bourses in October.