World Financial institution’s pitch for international buyers – Firstpost

The World Financial institution lately reaffirmed its sturdy confidence in India’s economic system, calling the nation a major vacation spot for international funding regardless of current inventory market corrections and overseas fund outflows.

“We aren’t nervous about India’s progress for the time being. We’re very bullish about India and can stay bullish,” World Financial institution’s Nation Director for India, Auguste Tano Kouame, mentioned whereas talking on the Benefit Assam 2.0 Enterprise Summit. He urged buyers to look past short-term volatility and recognise India’s long-term potential.

“If someone is nervous about current information, we wish to say that don’t fear. India is the shining gentle on the planet. If you’re seeking to make investments, then come and make investments right here. The Indian progress makes it the place to speculate,” Enterprise Right this moment quoted him as saying.

Market pressures and FII outflows

Kouame’s remarks come at a time when India’s inventory market has been beneath strain.

Forward of the market opening on Thursday (February 27), the blue-chip Nifty 50 index had sunk about 14 per cent from its all-time excessive in late September 2024. After 5 straight months of losses, together with February, it’s teetering on the sting of its longest shedding streak since July-November 1996, when it plunged greater than 25 per cent.

Since October, FIIs have withdrawn almost Rs 2 lakh crore ($24 billion) from Indian equities, with midcap and smallcap shares going through the steepest declines.

The pattern has continued into 2025, with FIIs promoting almost Rs 1 lakh crore ($12 billion) price of shares within the first 33 buying and selling classes of the 12 months.

Consultants attribute the sell-off to rising bond yields within the US, which have made American belongings extra engaging. “FIIs are selecting the soundness of US equities over Indian shares,” mentioned Vipul Bhowar, Senior Director of Listed Investments at Waterfield Advisors.

Financial progress and outlook

India’s GDP progress has slowed in current months, with the economic system increasing by 5.4 per cent within the July-September quarter of 2024– the bottom in almost two years. A slowdown in manufacturing, mining, and client spending contributed to the weaker efficiency.

Regardless of this, India’s broader financial fundamentals stay resilient.