EquitiesDe-risking, positive economic indicators draw investors back, but oil prices a concernForeign investors dumped Indian equities in the first six months of the year, with net sales totaling $26.7 billion, but have since turned buyers, with net purchases topping $3.8 billion.SAYAN CHAKRABORTYAugust 14, 2026 13:16 JSTBENGALURU -- A correction in artificial intelligence-related stock valuations and brisk economic activity are drawing foreign investors back to India as they look for safer havens. But analysts cautioned that sentiment could flip if oil prices spike, stretching the wait for a revival in India's battered stock markets.
Foreign buyers warm up to Indian equities amid anti-AI sentiment
De-risking, positive economic indicators draw investors back, but oil prices a concern
TL;DRAI
Foreign investors flipped from $26.7B H1 net sales to $3.8B purchases in Indian equities as AI stock corrections and strong GDP growth restored confidence. For tech leadership, the reversal signals emerging-market stability and normalized AI valuations; oil prices remain a risk factor.
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