Indian stock market declines despite strong economic growth rate

India's stock market has fallen sharply in recent months, even though the country's economy is growing at over 7% a year. On one day alone, investors lost $83 billion in market value.

Foreign investors have pulled more than 3 lakh crore rupees out of Indian stocks. One reason is that US government bonds now offer returns above 5%, which is close to a 25-year high. Safer investments have become more attractive compared to emerging markets like India.

Global money has also moved toward technology and artificial intelligence companies instead. India imports over 90% of its oil, so rising energy prices hurt the rupee and reduce company profits. Stock prices had also become expensive relative to what companies were actually earning.