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India's stock indices drop 12% amid capital outflow risks, but economy remains resilient, says Finance Minister.

Market News
19 Oct 2026, 02:00 WIB
CNBC
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Bearish
India's stock indices drop 12% amid capital outflow risks, but economy remains resilient, says Finance Minister.

India's key stock indices have fallen nearly 12% since January due to excess liquidity and significant foreign capital outflows, which Finance Minister Nirmala Sitharaman identifies as a major risk for 2027. Despite this, India's economic fundamentals remain strong, supported by steady domestic investment and growth in frontier technologies like semiconductors. The country has not attracted much AI-related investment, which has flowed instead to markets like Taiwan and Korea, but Sitharaman believes India would not be severely impacted if the global AI bubble bursts. The government continues to focus on strengthening the economy amid global trade uncertainties and geopolitical challenges.

India's Finance Minister's comments on equity market challenges come alongside Pluang's Financials-sector snapshot as of Oct 19, 2026 03:11 WIB: among 142 priced US stocks, 63 advanced while 78 declined. Notably, GLXY dropped 11.56% in one day with a typical hold time of 4 days, contrasting with RIOT's 11.48% fall over a longer 17-day hold, and BTBT's 11.13% decline with a 14-day hold period. This breadth indicates a mixed market mood within the sector.

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