Retail Investors Turn Sellers as Indian Markets Lag Asian Peers

India’s benchmark NSE Nifty 50 Index has risen nearly 10% so far this year, but it continues to trail the strong performances of equity markets in China, Taiwan and South Korea — largely due to India’s limited exposure to artificial intelligence–driven stocks.

Despite the index being on track for its 10th consecutive year of gains, it has still not managed to surpass its all-time high set last year.

Meanwhile, retail traders are growing increasingly cautious as concerns about economic growth persist and stretched valuations weigh on market sentiment.

According to National Stock Exchange data, individual investors, including proprietary traders and direct equity buyers, have sold ₹197 billion ($2.2 billion) worth of shares on a net basis so far this quarter. This puts them on track for their largest quarterly selloff since June 2023, according to Bloomberg-compiled figures.

Analysts say the selling pressure highlights waning investor confidence ahead of the year-end, with many choosing to book profits or reduce exposure amid uncertainty about future earnings growth.