FPI equity withdrawals cyclical, money may return as AI boom peaks: NSE MD & CEO Ashish Chauhan
Foreign investors pulled funds from Indian equities amid global AI-driven moves, signaling possible inflows when the AI boom peaks
Foreign portfolio investors (FPIs) are currently withdrawing funds from Indian equities due to the AI-led rally in the US and Asian markets like South Korea and Taiwan, according to NSE Managing Director and CEO Ashish Chauhan. Chauhan noted that the American market has expanded from $25 trillion to approximately $75 trillion, similar to the growth seen in Korea and Taiwan.
He expects some of these funds to return to India as the current cycle concludes. Chauhan, however, emphasized that this is his personal perspective on the market cycle. The comments come amid renewed FPI selling in Indian equities in September, following a two-month buying spree in July and August. FPIs experienced a net withdrawal of ₹23,676 crore as of September 19, driven by global market uncertainty, higher US bond yields, elevated crude oil prices, and currency pressures.
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