India is cheaper. Why are foreign investors still selling?
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Foreign investors sold ₹45,537 crore of Indian stocks in September, leading to net equity outflows of ₹35,861 crore.
- ✓Despite cheaper valuations, experts said India lacks the growth momentum seen in global markets.
- ✓“India is missing that ‘wow factor’,” said Kranthi Bathini, which explains the continued selling pressure and market underperformance.
Story at a Glance
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- MARKET
- Reported By
- Livemint
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- 5 Minute(s)
- Market Focus
- India Economy
The divergence was particularly stark in September. FPIs sold ₹45,537 crore through stock exchanges but invested ₹9,676 crore in the primary market, leaving net equity outflows of ₹35,861 crore.
“The valuation correction has made India considerably more investable, but lower multiples alone are unlikely to bring back sustained foreign buying,” said Vishad Turakhia, chief executive officer of Equirus Securities.
For foreign investors, the decision combines valuation, earnings momentum, currency movements and the returns available elsewhere, he said.
Cheaper India, better alternatives
The selling has continued despite a significant valuation correction. The Nifty 50 traded at 20.5 times trailing 12-month earnings on 30 September, down from 25 times at the September 2024 market peak.
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