India's Finance Minister Nirmala Sitaraman said that excess liquidity in the Indian stock market is the cause of weak stock market performance, and this factor may continue to have an impact. On Friday, on the sidelines of the International Monetary Fund-World Bank meeting held in Bangkok, Sitaraman said, “The low threshold for obtaining capital and sufficient liquidity also make it easy for investors to withdraw their capital from the stock market.” However, at the same time, she said that India's economic fundamentals are “in good shape.” The data shows that although India's economic growth remains resilient under trade uncertainty and geopolitical shocks, India's main benchmark stock index has fallen by nearly 12% since January this year. The Indian stock market has experienced a record outflow of foreign capital. Sitaraman said that continued capital outflows will be one of the biggest risks facing India in 2027. According to data from India's depository NSDL, foreign portfolio investors have sold more than 33 billion US dollars of Indian direct stock assets so far this year. The Indian market is now viewed as a target for transactions that circumvent the AI circuit; on the other hand, the Korean market, which has leading AI companies, has attracted a large inflow of investment. However, Sitaraman believes that the global AI boom has shown a rift, and even if the AI bubble bursts, India will not be affected by a chain shock. She said that India has not welcomed large-scale AI-related investments like other economies.

India's Finance Minister Nirmala Sitaraman said that excess liquidity in the Indian stock market is the cause of weak stock market performance, and this factor may continue to have an impact. On Friday, on the sidelines of the International Monetary Fund-World Bank meeting held in Bangkok, Sitaraman said, “The low threshold for obtaining capital and sufficient liquidity also make it easy for investors to withdraw their capital from the stock market.” However, at the same time, she said that India's economic fundamentals are “in good shape.” The data shows that although India's economic growth remains resilient under trade uncertainty and geopolitical shocks, India's main benchmark stock index has fallen by nearly 12% since January this year. The Indian stock market has experienced a record outflow of foreign capital. Sitaraman said that continued capital outflows will be one of the biggest risks facing India in 2027. According to data from India's depository NSDL, foreign portfolio investors have sold more than 33 billion US dollars of Indian direct stock assets so far this year. The Indian market is now viewed as a target for transactions that circumvent the AI circuit; on the other hand, the Korean market, which has leading AI companies, has attracted a large inflow of investment. However, Sitaraman believes that the global AI boom has shown a rift, and even if the AI bubble bursts, India will not be affected by a chain shock. She said that India has not welcomed large-scale AI-related investments like other economies.