India Emerges as FPI Favourite Amid Global AI Market Turmoil, Equity Inflows Near ₹46 trillion

Amid a turbulent global environment for artificial‑intelligence stocks, India has risen as the top choice for foreign portfolio investors. Cumulative foreign equity investment reached approximately ₹45,970 crore in November, a record that underscores the country's growing appeal. The capital inflow spanned financial services, information technology, automotive and telecommunications, pushing the Nifty index up by about 8.6 percent over the past week and sealing a high of 25,030.35. Bank Nifty also posted an 8 percent increase, while the Nifty Mid‑Cap 100 and Small‑Cap 100 added 5.8 percent and 2.8 percent respectively. The sudden pivot by FPIs is traced to massive sell‑offs in AI‑centric markets like the United States, South Korea, Taiwan and Japan, where concerns over ballooning data‑centre costs and a newly‑elected Democratic Congress have cooled investor enthusiasm. The aggressive buying generated a short‑squeeze that accelerated the market rally. Looking forward, the continuation of this bullish phase hinges on sustained foreign participation, as domestic investors are currently engaging in profit‑taking. Participants will keep a close eye on Brent crude trends and any flare‑ups in U.S.–Iran tensions.