India’s record $29 billion foreign selloff wasn’t a verdict on the market but collateral damage from the global rush into AI stocks in Korea and Taiwan, according to Jefferies’ Global Head of Equity Strategy Christopher Wood. He says FIIs will return in force only if the AI trade has peaked or Indian equity valuations fall sharply.
The first trigger may now be emerging. Foreign investors bought a net $1.8 billion of Indian equities through July 15, their first monthly purchase since February, as money began rotating out of the AI trade.
