Business
Sensex Stalls Below Record After Foreign Outflows
India’s benchmark index has failed to breach its previous high for two years, as foreign investors withdrew capital on a large scale. The slowdown has sparked debate over the market’s resilience and the country’s growth narrative.
If foreign sentiment remains wary, the index could linger below its peak, prompting policymakers to consider incentives for domestic participation.
Since peaking two years ago, the Sensex has hovered below its historic summit, reflecting a persistent lack of buying pressure from overseas funds. The outflow coincided with a depreciating rupee and heightened concerns about fiscal deficits, prompting investors to seek safer havens and leaving domestic equities under pressure. The prolonged stagnation may erode confidence among corporate issuers, potentially delaying capital‑raising plans and constraining expansion in sectors reliant on foreign funding.
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