India's stock market is experiencing record inflows from retail investors, with mom-and-pop investors contributing a net Rs. 1.54 trillion (US$ 18.01 billion) to equities on the National Stock Exchange by November 30, surpassing the previous high of Rs. 1.42 trillion (US$ 16.61 billion) in 2021. This surge in domestic investments contrasts sharply with declining foreign interest, as global funds made their smallest annual investment since 1999, at just Rs. 120 crore (US$ 14 million). Foreign investors have pulled out Rs. 98,950 crore (US$ 11.57 billion) since October, citing slowing earnings growth and concerns over weak consumer demand, which has dampened the NSE Nifty 50 index's annual gains to about 9%.
Despite foreign outflows, analysts remain optimistic about India's market outlook, highlighting opportunities created by recent share price corrections. Bajaj Financial Securities predicts a 19% return for the Nifty over the next year, potentially reaching 28,700 points. Robust domestic flows have enabled the market to remain on track for a ninth consecutive year of gains. With increased government spending anticipated in 2025 and India poised to benefit from global trade shifts, analysts expect this upward momentum to carry into the new year.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.