Easy exits hurting Indian stocks: Nirmala Sitharaman explains why equities are underperforming
BSE is in focus in a monetary policy development.
· Economic Times Markets, ET Stocks
Finance Minister Nirmala Sitharaman says easy liquidity is allowing investors to exit Indian equities as the Nifty and Sensex struggle to deliver positive returns. Foreign investors have pulled out nearly $63.6 billion since October 2024, erasing nine years of inflows, amid rising US yields, a stronger dollar and AI-driven investment shifts.
The analysis
Rate decisions ripple straight into banks, NBFCs and every rate-sensitive sector — from real estate to autos.
Because the driver here is macro rather than company-specific, the read-through is to index-level positioning rather than to any single name — correlations tend to rise when the whole market faces the same signal.
Why it matters
- With BSE involved, this carries a regulatory dimension that can outlast the immediate market reaction.
Market context
- A market-wide development: it reaches beyond any single stock.
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