In the first seven months of 2022, foreign investors shunned Indian securities markets. By June, foreign portfolio investors had sold Rs2.08 lakh crore ($26 billion) of Indian equities, according to the National Securities Depository.
By early August, when the tide appeared to turn, foreign portfolio investors had pulled out $30 billion from the Indian markets overall since the markets turned in late 2021, by far the worst figures since the global financial crisis.
But there is a big difference. As recently as five years ago, an outflow like that would have crashed the Indian stock markets. That hasn’t happened.
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