Foreign portfolio investors pour Rs 38,971 crore into Indian equities amid global AI sell-off
Foreign portfolio investors bought roughly Rs 38,971 crore of Indian stocks in a week, as a correction in global AI-related shares shifted attention to India's earnings growth and large-cap valuations.
Foreign portfolio investors (FPIs) purchased about Rs 38,971 crore of Indian equities over the past week, according to NSDL data. The inflow follows a broad sell-off in global technology shares, where concerns about artificial-intelligence investments and a potential slowdown in data-centre spending have weighed on markets.
The AI-related correction in the United States, South Korea, Taiwan and Japan appears to have made Indian stocks more attractive, prompting a reversal of earlier outflows. V K Vijayakumar, chief investment strategist at Geojit Investments Limited, said the shift reflected a “sudden reversal in institutional investment trends, with FPIs turning aggressive buyers while domestic institutional investors remained sellers on all trading days.”
He noted that the AI sell-off was driven by worries over U.S. data-centre spending and that the Democratic majority in Congress is expected to seek safeguards for AI projects. Vijayakumar added that India’s status as a “non-AI trade,” combined with strong earnings growth and appealing large-cap valuations, has boosted its appeal to overseas investors.
According to the strategist, the renewed foreign buying has supported a rally in Indian equities, with the Nifty index rising 7.58 % over the week. He said FPIs have become major buyers in index-heavy sectors such as financials, information technology, automobiles and telecom.