India's Stock Market Slumps: Will Bitcoin Fill the Gap?

India has fallen to the bottom of Bank of America's Asian equity ranking, sparking concerns about where capital will move next. However, data does not show Indian investors abandoning stocks for Bitcoin or gold.

The shift is notable because India was BofA's most-preferred Asian market in May 2025, when 42% of respondents were net overweight. Since then, positioning has swung by 74 percentage points, highlighting how sharply foreign sentiment toward Indian equities has deteriorated.

Despite the decline in foreign conviction, weaker sentiment has not yet translated into a broad withdrawal of foreign capital. Global investors have bought more than $4 billion of Indian shares this quarter after record outflows during the first half of the year.