Global Funds Scale Back India Exposure Amid Earnings and Growth Concerns
Some overseas investors are reducing allocations as concerns grow over corporate earnings and the absence of a strong AI led investment theme.
NEW DELHI, Sep 14: Global investors are becoming increasingly cautious about Indian equities, with some fund managers reducing their exposure amid concerns over corporate earnings and the outlook for economic growth.
A recent assessment found that some global money managers have sharply cut their India allocations, with weak earnings momentum and the lack of a major artificial intelligence investment theme cited among the factors influencing their decisions.
The shift comes as Indian markets contend with persistent foreign selling and a challenging global backdrop. Rising crude oil prices, higher US bond yields and a stronger dollar have also reduced the attractiveness of emerging-market assets.
Foreign portfolio investors pulled ₹13,138 crore from Indian equities in the first half of September, adding to pressure on domestic markets.
Market participants are now closely watching corporate earnings, currency movements, oil prices and global interest rate decisions to assess whether overseas investor sentiment toward Indian assets can improve.
Despite the recent caution, India remains one of the world’s major emerging markets, with long-term growth prospects continuing to attract international investors.
