Not Just India, Selling Everywhere
Many people think that only India is seeing heavy selling, but that is not true. The data clearly shows that money is going out from most emerging markets. In 2025, India saw a large outflow of around 18 billion dollars. But at the same time, Taiwan also saw around 8 billion dollars going out.
Vietnam and South Korea both saw about 5 billion dollars leaving. So, selling is not limited to just one country.
Past Trends Tell a Bigger Story
If we look a few years back, the picture becomes even more clear. In 2020, India received about 23 billion dollars as inflow. But during that same time, South Korea saw an outflow of around 20 billion dollars, and Taiwan saw about 15 billion dollars going out. This shows that money keeps moving between markets. It is never one-sided.
Where Is Buying Happening?
In recent times, buying has been seen more in Brazil during 2025. Moving into the 2025–26 financial year, Taiwan has seen strong buying activity. South Korea has also seen some buying. However, if we look at the bigger numbers, there has still been heavy selling in countries like South Korea and Taiwan in certain months.
Why Is Money Moving Out?
One big reason behind this trend is the strong returns in the US bond market. Long-term bond yields are around 5 percent, which makes them very attractive. Because of this, investors are moving money from emerging market stocks to safer options like US bonds. When bond yields fall, money can start coming back into these markets.
Can the Trend Reverse?
Even though India has seen higher selling, it is not something very unusual. In 2022, about 17 billion dollars went out, but in 2023, around 21 billion dollars came back. This shows that reversals can happen. Right now, the market is going through a time correction and price correction. At some point, this trend can turn again, and inflows can return.
