Global Funds' AUC See 2nd Worst Plunge Amid Market Slide

Global fund managers witnessed one of their largest-ever declines in assets under custody (AUC) during the ongoing correction in the Indian markets, as stocks came under pressure from foreign outflows and the weakening rupee.

- SAI ARAVINDH

The benchmark indices—Nifty and the 30-stock Sensex—entered the 'correction' zone, falling 15.2 per cent and 14 per cent, respectively, from their September peak.

The broader market faced an even sharper selloff due to significant inflows over the past two years. The NSE Midcap 150 is down 19.9 per cent, while the NSE Smallcap 150 has dropped 23 per cent from previous highs.

The selloff, which started with China's revival measures, was intensified by the slowing economy and US President Donald Trump's tariff actions. Foreign portfolio investors have offloaded stocks worth ₹1.83 trillion since October last year, while domestic funds have been buying on dips. In 2025, FPIs were net sellers of ₹1.4 trillion, marking the worst start to any year, according to the data from National Securities Depository Ltd.