ndian stocks in January after roughly $19 billion of outflows in 2025, keeping risk appetite thin.
Why should I care?
For markets: Earnings season is doing the heavy lifting.
Because Reliance and ICICI Bank are major index weights, their misses quickly spilled into broad selling, dragging mid- and small-caps and leaving 14 of 16 sectors lower. Within IT, the split reaction – Wipro down on guidance while peers held up better – shows investors are rewarding clear growth and punishing uncertainty. With foreign selling still a theme, results now matter not just for individual stocks, but for whether the whole market can keep its footing.
The bigger picture: Global headlines can leak into local prices.
Persistent foreign outflows shrink the pool of steady buyers, so any negative surprise can hit harder than it otherwise would. Add the risk of sudden trade-policy shifts from the US and other major economies, and global investors tend to get pickier about where they put fresh money. That raises the bar for Indian companies – steady execution starts to matter as much as the growth story.
