Foreign investors sold $5.4 billion worth of Indian equities in January 2024, marking the worst start to a year. Concerns over slow economic growth, weaker corporate earnings, and consumption trends have driven the sell-off, intensifying since October.

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• $5.4 billion pulled out in January 2024, adding to the $17 billion withdrawn since October.
• Weak earnings and slow consumption trends deter foreign investors.
• NSE Nifty 50 Index dropped to its lowest since June, falling 12% from its September peak.
• Only 3 of 10 companies in the Nifty 50 Index beat earnings estimates this quarter.
• Hindustan Unilever’s earnings report expected to indicate subdued demand recovery.
• Shift in global investments to China as US-China relations ease may affect Indian markets.
• Indian equities remain among the most expensive globally, trading at 19 times forward earnings.
• Investors await the federal budget on Feb. 1 for potential growth-boosting measures.
• Key sectors impacted by the sell-off include financials, energy, and consumption-sensitive areas.
• Market outlook remains pessimistic, with expectations of further declines.