New Delhi, November 8, 2026 (Yes Punjab News)
The global sell-off in artificial intelligence (AI)-related stocks has made India, widely regarded as a non-AI investment market, more attractive to foreign portfolio investors (FPIs). FPIs have invested a net Rs 45,970 crore in the Indian market so far in November, triggering a sharp rally.
The Nifty surged 8.6 per cent during the week, with foreign investors turning major buyers in index heavyweights across financial services, IT, automobiles and telecom sectors.
“Furthermore, the impressive earnings growth in India and the attractive large-cap valuations, made India a favoured investment destination,” said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd.
Last week saw a sharp reversal in institutional activity, with FPIs emerging as aggressive buyers while domestic institutional investors (DIIs) remained net sellers on all five trading days. Heavy foreign buying and a resulting short squeeze contributed to the market rally.
Analysts attributed the change in FPI sentiment to the AI-related sell-off in the US and other markets, including South Korea, Taiwan and Japan. The downturn was triggered by concerns over data centre spending in the US. Market participants said Democrats, who won both chambers of Congress, are opposed to indiscriminate spending on data centres and are expected to demand safeguards for AI.
The Nifty gained in all five sessions and closed at the week’s high of 25,030.35, up 8.6 per cent. The Bank Nifty rose 8 per cent, while the Nifty Midcap 100 and Nifty Smallcap 100 gained 5.8 per cent and 2.8 per cent, respectively.
In the coming weeks, the sustainability of foreign inflows will remain crucial, as heavy domestic profit-booking has left the rally dependent on continued FPI support. Investors will also monitor Brent crude prices and developments surrounding US-Iran tensions.
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