New Delhi, July 13 -- Foreign investors pulled $961 million (approximately Rs.9,201.14 crore) from India's metals and mining stocks in June, the biggest monthly outflow since August 2023's $1,266 million, according to data from National Securities Depository Ltd, as global investors retreated from cyclical commodities. While the selling appears driven more by portfolio rebalancing than a structural retreat, analysts say the bigger concern is that earnings estimates for the sector may still have further to fall.

Global investors have been cutting exposure to cyclical commodities as uncertainty over global growth, US trade policies, China's demand outlook and a stronger US dollar clouds the sector's outlook. Given their highly cyclical and...