Reverse AI trade drives foreign inflows back to India but rising US inflation poses challenge: Ajay Bagga

Foreign investors are returning to Indian equity markets as global funds shift away from the artificial intelligence infrastructure trade in markets such as the US, Japan, South Korea and Taiwan, while India’s relatively attractive valuations and falling crude oil prices are improving its investment appeal, banking and market expert Ajay Bagga said.

According to NSDL data, foreign investors have pumped over Rs 53,000 crore into Indian equities in November so far, following two consecutive months of selling.