Business · India Bureau
Indian Markets Weather Global Tech Selloff as FII Inflows Surge
While AI-driven stock losses ripple across Wall Street and Asian markets, India's equity benchmarks have demonstrated remarkable resilience. Foreign institutional investors returning to Indian equities are cited as a key stabilizing factor.
LSN India ·
Indian stock markets have bucked the trend of a broader Asian selloff triggered by weakness in artificial intelligence-linked stocks on Wall Street, with domestic indices holding relatively steady even as regional peers suffered significant losses.
Market analysts attribute India's outperformance primarily to renewed buying interest from foreign institutional investors (FIIs), who have returned to Indian equities with considerable capital inflows in recent sessions. This fresh appetite from overseas funds has provided critical support to domestic bourses, offsetting some of the negative momentum seen elsewhere across Asia.
The divergence reflects India's distinct market dynamics, where domestic fundamentals and FII flows have proven more influential than spillover effects from global technology stock corrections. Investors cite India's strong economic growth trajectory and corporate earnings prospects as factors maintaining confidence among foreign fund managers despite global headwinds.
Regional markets including those in Southeast Asia have not enjoyed similar insulation from the global tech rout, with bourses in the region recording steeper declines as foreign investors reassess exposure to technology-heavy portfolios.