Dec 31 Reuters Indian benchmarks blazed to record highs in the first few months of 2024 but slowing corporate earnings and an exodus of foreign funds curtailed their annual gains to about 8.5, the least among major global peers, and even pushed stocks into correction territory.

The Nifty 50 and Sensex rose 8.8 and 8.2, respectively, this year, logging their ninth straight year of gains, mostly on support from domestic institutional investors and policy continuity after India39;s ruling party returned to power.

The benchmarks rose about 21 each to hit record highs on Sept. 27. They slipped into correction territory a 10 drop from alltime high levels in November, hurt by record monthly foreign selling in October and a moderation in earnings growth.

The bluechips are still in correction territory.

This decline resulted in the benchmarks underperforming the Nasdaq Composite, Dow Jones Industrial Average, SP 500, Nikkei 225 and Shanghai Composite, which advanced 1232 this year.

However, inflows into equity mutual funds more than doubled yearonyear to a record high of 3.53 trillion rupees 41.23 billion, cushioning some of the volatility in foreign flows.

Foreign portfolio investors FPI remained net buyers for the year as of Dec. 30, adding stocks worth 20.26 billion rupees.

Lofty stock valuations, earnings pressures and macroeconomic challenges resulted in domestic equities underperforming some global markets, said Nikhil Rungta, chief investment officer of equity at…