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Trading activity in the cash segment of India’s equity market slumped to the lowest in more than a year as a selloff in shares continues on slower economic growth and rising global volatility.

The combined daily turnover on India’s two key bourses is about $10 billion this week based on the five-day moving average, according to data compiled by Bloomberg. The level was previously touched in November 2023 and represents a sharp drop from a record of nearly $26 billion in June.

The country’s benchmark NSE Nifty 50 gauge has slipped about 12% from its peak in September, with overseas investors withdrawing nearly $10 billion from local shares this year amid weak corporate earnings.

The pessimism, exacerbated by a broader rotation out of emerging-market assets, has also weighed on block sales taking place on exchanges, affecting cash turnover in the market.

“Support from domestic investors is also becoming weaker in the broader market,” said Aishvarya Dadheech, chief investment officer of Fident Asset Management. Thin trading volumes are making the impact on stock prices more pronounced, he said.