Domestic Investors Bolster India’s $5.1 Trillion Market Amid Foreign Outflows
Indian institutional investors are nearing a record year of equity purchases, injecting over $59 billion into the market as foreign funds withdraw $14 billion in 2025. This domestic resilience comes despite growth concerns tied to US tariffs and weak corporate earnings, with the NSE Nifty 50 Index gaining just 4% compared to China’s 15% rally.
Retail participation has been pivotal, fueled by disciplined mutual fund investments and recurring plans attracting $3 billion in recent months. "Steady inflows reflect entrenched habits," notes Christopher Wood of Jefferies, highlighting a structural shift from traditional assets like Gold and property to equities.