India’s stock market ended the year with its worst annual underperformance compared with Asian peers in almost 30 years, weighed down by heavy foreign fund outflows and a weakening rupee.
A rally that began in September fizzled out as global investors cut exposure, pulling out $1.7 billion in December and a record $17.9 billion over the year.
The sell-off was exacerbated by the rupee hitting record lows, eroding dollar returns, amid a lack of progress on an India-US trade deal and elevated US tariffs.
High valuations, slowing earnings growth and limited exposure to artificial intelligence-linked themes also dampened overseas investor sentiment.
The NSE Nifty 50 Index recorded its biggest regional underperformance since 1998, even as it logged its first monthly loss since August.
While strong domestic institutional buying helped Indian equities post a 10th straight year of gains, near-term uncertainty continues to cloud the outlook.
Disclaimer: This article is for information purposes only and does not constitute investment advice.
