Indian Stocks' Winning Streak Loses Momentum As Foreign Investors Exit
NDTV
The winning streak for Indian stocks is losing momentum as sentiment sours on the prospect of tighter monetary policy and smaller stimulus spending in the coming year.
New Delhi: The winning streak for Indian stocks is losing momentum as sentiment sours on the prospect of tighter monetary policy and smaller stimulus spending in the coming year.
India's benchmark S&P BSE Sensex has slumped 3.6% since the end of September, halting a rally that ran for six straight quarters and doubled the index's value. Since reaching a record high in October, the gauge has approached a technical correction, with foreign investors pulling out more than $4 billion from market over the past three months.
Historically high valuations have also made some analysts cautious. India's key equity gauges are trading at 20-21 times their estimated forward 12-month profits compared with 12 times for the MSCI Emerging Markets Index.
