Foreign investors flee, but Indians are buying the dip
While foreign investors have pulled $14 billion out of India's stock market this year, local institutional investors are filling the gap in a big way—pumping in over $59 billion and nearing last year's all-time high.
This shift is happening as global funds look to China, but Indian markets are holding steady thanks to strong homegrown support.
Domestic ownership in listed companies at nearly 18%
Mutual funds, insurance companies, and retail investors (through SIPs) are all pitching in—retail alone added $3 billion recently.
More Indians are choosing stocks over gold or real estate, with domestic ownership in listed companies now at nearly 18%, surpassing foreign stakes.
Despite some worries about high prices and global uncertainty, analysts say this steady local backing is keeping India's $5.1 trillion market resilient.