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Indian stocks attract $70 billion from domestic investors in 10 months

Indian investors have infused over $70 billion into local stocks this year, setting the stage for a potential record-breaking influx. Retail investors, with a significant contribution from local institutions, have driven this surge, despite global funds exiting the market. The National Stock Exchange of India has been pivotal in this trend, with over 90% of equity cash trading conducted through it. Challenges like pricey valuations and disappointing corporate earnings have surfaced, yet the market remains resilient.



In a remarkable display of confidence in the domestic market, Indian investors have injected over $70 billion into local stocks during the initial ten months of this year. This surge in investments positions the country's stock market for a potential record-breaking year of inflows, even as international funds are making exits from the scene.

 

Retail investors, both domestic and non-residents, have collectively purchased nearly $17 billion worth of local shares through the National Stock Exchange of India by the end of October. Notably, this exchange facilitates more than 90% of the equity cash trading in the nation, underscoring its pivotal role in the financial landscape. Meanwhile, local institutions have significantly surpassed this figure, adding three times the amount invested by retail investors.

 

The trend took a notable turn in October when foreign funds initiated substantial sell-offs, driven by concerns over lofty valuations and a resurgence in China's stock market. Additionally, underwhelming corporate earnings have contributed to a somewhat pessimistic outlook for domestic equities. Despite the Nifty 50 Index retracting by almost 8% since achieving a historic peak in late September, it remains on course to mark a ninth consecutive year of gains.

 

This robust local investment in Indian stocks not only underscores the resilience of the country's financial markets but also reflects the unwavering confidence of domestic investors in the long-term growth prospects of the Indian economy.

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