Foreign investors pour $6 bn into India stocks despite sinking economy

Foreigners have remained net buyers even after data Monday showed India's economy shrank by a record 23.9% in the June quarter

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