Foreign Investors Pour ₹45,970 Crore Into Indian Equities As Global AI Stocks Fall

Foreign portfolio investors have poured ₹45,970 crore into Indian equities in just five trading sessions, marking a major shift after two straight months of selling. ## What Happened The massive buying spree drove the Nifty 50 up by 8.6 percent during the week, marking its strongest weekly performance since February 2021. The rally also helped the index pare its year-to-date losses to 4.21 percent. At its lowest point this year, the index had fallen nearly 15 percent before recovering close to 13 percent from that yearly low. The inflows strengthened the Indian rupee, which climbed 0.6 percent to 93.91 against the US dollar, reaching its strongest level since April. ## Causes And Reactions This turnaround came as global AI-linked stocks suffered a correction due to concerns over potential US restrictions on data centres, triggering a wider tech sell-off across Asia. Meanwhile, crude oil prices dropped sharply, easing inflation fears for import-dependent India, while an improving corporate earnings outlook made local shares more attractive. Choice Wealth Chief Investment Strategy Officer Dheeraj Gaur noted that three factors drove the rally: the US midterm results hinting at de-escalation in the US-Iran conflict with Brent crude falling about 13 percent, a tech rout that made global funds rotate out of AI stocks into markets like India, and Indian stocks looking cheap after a poor year. Gaur also pointed out that upcoming US Consumer Price Index data, crude oil prices, Gulf region developments, and Federal Reserve commentary will determine future fund flows. ## Context Foreign portfolio investments in emerging markets like India often fluctuate based on global liquidity, US interest rates, and commodity prices such as crude oil. When major developed markets experience tech sector sell-offs or rising inflation concerns, global institutional investors frequently rebalance their portfolios by shifting capital toward markets with lower technology sector exposure and more resilient domestic earnings.