(Bloomberg) -- India’s ultra-rich are fleeing the country as the world’s second-most populous nation deals with a deadly wave of the coronavirus pandemic, but that is unlikely to push wealthy investors to dump their stock holdings, according to Bloomberg Intelligence.

“Despite lower trading activity, our analysis shows that stocks with high retail ownership don’t appear to be at a risk of a sell-off,” Gaurav Patankar, head of EM Equity Strategy, and Nitin Chanduka, strategist, said in a note.

A custom basket of 30 stocks with retail ownership of at least 20%, favored by wealthy individual investors, has outperformed the National Stock Exchange of India Ltd.’s Nifty 200 index by 7% this year, according to Patankar and Chanduka.

Foreign investors sold about $1 billion of Indian equities in April, the most since last March as India reported a spike in cases that eclipsed the previous peak in September. Still, India remains the emerging market with the highest foreign inflows into stocks so far this year, according to Patankar and Chanduka, who contend that “most of the de-risking related to Covid-19 is over,” and inflows should again start to support stocks in India’s $2.7 trillion market.

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