Foreign investors have been selling Indian equities for months. Now, they are returning to a select set of stocks, with HFCL emerging as one of the biggest beneficiaries of this selective comeback. Although foreign institutional investors (FIIs) have pulled out nearly $20 billion in FY26, the selling has not been broad-based.
Instead, their return is increasingly value-driven and focused on select opportunities. The pace of outflows has eased as India's valuation premium over emerging markets cooled to its historical average of around 50%, though overseas allocations remain highly sensitive to global macroeconomic developments.
