India’s position as a premier destination for global capital is facing a significant test as international investors pivot toward markets with deeper exposure to the artificial intelligence revolution. Throughout the past year, the Indian stock market has enjoyed a historic bull run, fueled by robust domestic growth and a reputation as a stable alternative to China. However, recent data suggests that global fund managers are increasingly shifting their focus toward tech-heavy indices in Taiwan and South Korea, where the semiconductor supply chain provides a direct link to the global AI boom.
The Shift in Global Capital Allocation
For years, India attracted record inflows due to its massive consumer base and expanding manufacturing sector. According to recent reports from the National Securities Depository Ltd, foreign portfolio investors have begun trimming their holdings in Indian equities to capitalize on the soaring valuations of AI-linked tech giants elsewhere.
This trend marks a departure from the
