Global funds dump Indian equities at record pace on oil shock, growth fears

Global funds are rapidly withdrawing from Indian equities, with $18.84 billion pulled in just over three months, surpassing the previous full-year record. The ongoing US-Iran conflict has exacerbated concerns about India's economic outlook, leading to significant market pressure and a decline in the Nifty 50 Index. While domestic investments have provided some support, foreign interest has waned due to geopolitical risks and a lack of appealing narratives in the Indian market. Analysts suggest that foreign flows may return if geopolitical tensions ease and valuations become more attractive.