Amidst sluggish economic growth, the Indian stock market is facing unprecedented pressure.

Since January, global funds have withdrawn a net $5.4 billion from the Indian stock market, marking the largest monthly outflow since October 2023.

The benchmark NSE Nifty 50 index fell to its lowest point since June of last year on Tuesday, down 12% from its September high. Out of the 10 NSE Nifty 50 constituent companies that have reported earnings so far this fiscal quarter, only 3 have exceeded expectations.

Bloomberg strategist Nitin Chanduka pointed out that the waning enthusiasm of foreign investors in the Indian market is due to heightened concerns about earnings crises and a slowdown in consumption. The growing pessimism among investors about future growth prospects has led to a significant outflow of funds.

Is the bull market over? Indian stock market faces unprecedented pressure.

India’s economy is experiencing its slowest growth rate since 2020.

Since January, global funds have withdrawn a net $5.4 billion from the Indian stock market, indicating a severe lack of market confidence. Especially with weakening corporate earnings expectations and slowing consumption, investor sentiment has become increasingly gloomy.

Within 24 hours of President Trump’s inauguration, the Indian stock market experienced greater volatility than most Asian markets. The NSE Volatility Index (often referred to as the fear index) extended its four-day rally, reaching levels not seen since August.