Foreign investment in Indian stocks set to rebound, says asset manager Amundi

Amundi, Europe's largest asset manager, expects foreign investors to return to Indian equities as heavy selling in 2025 eases. Foreign investors sold $16.4 billion in shares this year, while domestic buyers purchased $77 billion. Despite underperforming other emerging markets, India's Nifty 50 rose 10.8%. Amundi recommends increasing allocation to Indian equities, citing strong domestic demand and potential for growth. The firm remains positive on Indian and emerging market equities for the first half of 2026, viewing India as a hedge against global volatility.