Individual and proprietary traders sold over 70 billion rupees of shares through Oct. 26, tracking the largest monthly outflow since February. The trend reflects growing caution ahead of Jio Platforms' blockbuster IPO, with leveraged positions falling below 1.5 trillion rupees. While enthusiasm for new listings remains strong, retail investors are trimming secondary-market bets amid fading risk appetite.
Earnings pressure is mounting for consumer firms, with Hindustan Unilever and Asian Paints reporting margin compression from higher crude costs and inflation. Both companies have struggled to fully pass cost increases to consumers, testing pricing power in an El Nino-affected economy.
Foreign investors may return to India's anti-AI market if capital-gains tax cuts materialize, Jefferies said, potentially boosting the rupee. Financials, tech, and consumer staples could benefit most from renewed FII inflows, while hospital stocks face near-term pressure pending a Supreme Court ruling on pharmacy margins.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing