India’s stock market has significantly lagged global equities and commodities this year, prompting foreign investors to pull out record sums. US, Asian, and European markets have posted strong gains, while India has seen limited growth in dollar terms, leading to the highest FII outflows among emerging markets.
US equities have gained between 10% and 15% on average, while most Asian markets have seen gains of 15% to 35% in dollar terms. European markets have also outperformed India, rising between 18% and 30% since the beginning of the year.
The underperformance extends to commodities as well. Gold has surged 42.5% in dollar terms, silver has jumped 52%, and copper has risen 18% since the start of the year. This performance gap has made India less attractive to foreign institutional investors compared to other emerging markets.
The net outflow of $21.5 billion from India is the highest among emerging markets so far this year. The next largest outflow is from South Korea, where foreign investors have sold nearly $20 billion. The data highlights the challenges India faces in retaining foreign investment amid stronger global market performance.
