“Most active foreign investor funds are reallocating out of India. Money is going into many other markets—Korea, Hong Kong, Brazil—so many markets are getting money, but India is seeing outflows,” Sabharwal said in a conversation with ET Now. He added that this trend-driven movement could persist for some time, even though company-level data tells a different story.
Sabharwal pointed out that recent earnings from several sectors indicate stability and even improvement. Banking results from Axis Bank and Kotak Mahindra Bank suggest a pickup in credit growth, while asset quality remains strong. UltraTech Cement reported robust third-quarter volumes, growing faster than the industry, with overall cement demand rising 9–10%, a notably healthy figure. On the consumption front, Godrej Consumer Products has also indicated a revival in demand.
“I do not think things are as negative as what the market screen or the numbers on the market are reflecting,” he said.