Indian Stocks Post Worst Asia Underperformance in Three Decades

Indian equities ended the year with their worst annual underperformance versus Asian peers in nearly three decades, weighed down by foreign outflows and a weakening rupee.

A rebound in the nation’s shares that started in September has faded as global fund managers cut exposure to the country. Foreign funds pulled out $1.7 billion in December, taking annual outflows to a record $17.9 billion. The selling was compounded by a slide in the rupee that has eroded returns for overseas investors.