Extreme turbulence in the global artificial intelligence trade has sent South Korea’s benchmark KOSPI index on a roller-coaster ride, sliding 18% from its historic peak to test bear market levels before shrugging off the technical downturn today on the back of a powerful 5% rally. The violent swings have triggered a stark divergence in emerging market equities, while India’s Nifty pushes 3% higher over the last month.
Foreign Portfolio Investors (FPIs) have pulled about Rs 2.6 lakh crore out of India in 2026, with the lion's share of that capital chasing the global AI semiconductor buildout via Samsung and SK Hynix in Korea, and TSMC in Taiwan. Now, with the tech trade under severe pressure, the question is whether Korea’s pain will provide the structural medicine to revive India's under-owned bulls.
