Foreign investment in Indian stocks set to rebound, says asset manager Amundi

Foreign investors have sold $16.4 billion of Indian shares so far this year, marking their second-largest outflow on record, even as domestic institutional buyers stepped in with $77 billion of purchases.
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The outflows, driven by soft nominal growth, moderate earnings, steep U.S. tariffs, and high valuations left Indian equities trailing broader emerging-market benchmarks for the first time in five years.
With valuations nearing neutral zone and domestic demand strong, conditions for a rebound in foreign flows are falling into place, said Alessia Berardi, head of emerging macro strategy at Amundi Investment Institute. The Paris-based firm manages $2.67 trillion in assets.