FIIs return to Dalal Street, pump Rs 38,971 crore into Indian equities amid AI sell-off
In a remarkable week, foreign portfolio investors flocked to Indian equities, pouring over Rs 38,000 crore into the market. This influx was largely driven by a global downturn in technology stocks fueled by AI concerns. While domestic institutional investors took a step back, foreign buyers eagerly snapped up shares of top companies, pushing the Nifty index up by an impressive 7.58%.
Foreign portfolio investors (FPIs) have injected Rs 38,971 crore into Indian equities this week, as global technology stocks experienced a significant decline, creating an attractive environment for Indian equities. Concerns over AI spending and potential slowdown in data center investments in countries like the US, South Korea, Taiwan, and Japan led to selling across global markets.
This shift in investment trends has made India more appealing to FPIs, who were previously moving away from Indian shares in favor of AI-focused markets. However, the recent drop in AI stocks has reversed this strategy, with foreign investors now returning to Indian equities. While FPIs have turned aggressive buyers, domestic institutional investors (DIIs) have continued to sell across all trading days last week.
The change in investment patterns, combined with India's impressive earnings growth and attractive large-cap valuations, has made the country an attractive destination for foreign investors, leading to a 7.58% rise in the Nifty over the week.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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