Sales of shares of Indian companies by foreign investors in January rose to their highest level in a year, Bloomberg calculated.
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Sale of shares
According to the agency, global funds withdrew more than $3.1 billion from the Indian stock market last month, recording profits after rising prices last year.
In 2023, net purchases by foreign investors of Indian equities amounted to $21.4 billion, the highest volume in three years. Moreover, more than 40% of the influx of foreign funds occurred in the last two months of 2023. This helped the main index of the Bombay Stock Exchange S&P BSE Sensex, which includes 30 securities of the largest companies in India, to grow by almost 19% for the year. This was the eighth year of market growth in a row.
The Indian market benefited from a decrease in global funds' interest in shares from China, the agency writes. But Beijing's recent measures to support its market have some investors thinking about changing their strategy.
Chinese authorities plan to use about 2 trillion yuan ($278 billion), mostly from offshore accounts of Chinese state-owned enterprises, to purchase mainland Chinese shares through the Hong Kong stock exchange. According to the publication, the government also allocated 300 billion yuan from local funds to invest in shares of mainland China.
Recall
In January, the Indian stock market became the fourth largest in the world, overtaking Hong Kong with its capitalization is $4.29 trillion. According to Bloomberg, at the close of trading on January 22, the total value of shares listed on Indian stock exchanges was $4.33 trillion.
The stock market in India is experiencing booming in popularity thanks to a rapidly growing private investor base and strong corporate earnings. The country is attracting new capital from both global investors and companies thanks to its stable political system and consumer-driven economy, which remains one of the fastest growing major economies in the world.
According to the World Bank, India With a population of 1.4 billion people, it is one of the fastest growing economies in the world and by 2047 could achieve the status of a high-income country.