Indian equities keep cooling—overseas selling hasn’t let up, dragging Chinaamc Msci India Etf (03404.HK) down more than 1%.

NewTimeSpace Watch – 27 Jan: After a year of net selling in 2025, foreign investors continued to unload Indian equities in January 2026, leaving the SENSEX soft and its downside gap widening. Chinaamc Msci India Etf (03404.HK) stayed under pressure through the afternoon, down more than 1% as of 13:50 and off more than 6% year-to-date.

HKEX data show the fund tracks the MSCI India Net Total Return Index—MSCI’s flagship benchmark for large- and mid-cap India. The cap-weighted gauge covers roughly 85% of India’s investable market-cap across 158 constituents.

Since its 2001 base date the index has delivered high-beta, high-growth returns: to end-July 2025 it had compounded at ~12.9% p.a., a 28-fold cumulative gain, but with annualised volatility around 22%.

India’s stats office predicted on 7 Jan that GDP grew 7.4% in FY-2025, with Q2 (Jul-Sep) up a faster-than-expected 8.2%.

Yet global AI-driven flows have bypassed India. Relatively few domestic tech megacaps and a stronger USD channelled overseas money elsewhere. While the SENSEX still rose 9% in 2025—helped by local buyers—it lagged the Dow’s ~13% and the S&P 500’s ~17% advance.

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