Global funds cut India stock exposure to 17-year low amid AI concerns

Global investors are withdrawing from Indian equity markets, with foreign portfolio ownership falling to a seventeen-year low. The pullback reflects investor concerns over limited artificial intelligence investment opportunities in India compared to other markets.

According to a recent survey, India now ranks as the least-favored market across Asia. While domestic institutions continue to provide market support, the exodus of foreign capital raises concerns about sustained investment flows. Investors indicate preference for more durable foreign direct investments to support India's manufacturing sector growth.