India’s shrinking economy is not stopping foreign investors from pouring money into the nation’s stocks betting on a recovery.
International buyers plowed a net $6 billion into shares in Asia’s third-largest economy in August, the most since March last year. That’s as all other markets in the region excluding China suffered net withdrawals during the month.
Part of it is a bet that Indian equities will play catch-up after trailing the region’s benchmark so far in 2020: the S&P BSE Sensex has underperformed the MSCI Asia Pacific Index by about 6.5 percentage points. Foreigners were also drawn to share sales by some of India’s marquee financial firms — ICICI Bank Ltd., Axis Bank Ltd. and mortgage lender Housing Development Finance Corp raised a combined ($4.7 billion) last month.
“We place India at the top of the list with China for investment returns