Negative impactEconomy HIGH IMPACT

FPI equity withdrawals cyclical, money may return as AI boom peaks: NSE MD & CEO Ashish Chauhan

BusinessLine 7 hrs ago·26 Sept 2026, 3:41 pm

Foreign portfolio investors have been pulling money out of Indian equities, a trend the NSE’s managing director and CEO Ashish Chauhan described as cyclical and tied to global moves in AI‑focused stocks. He said the outflows could reverse once the AI boom reaches its peak, suggesting a possible re‑entry of foreign capital.

For investors, FPI flows are a key driver of market liquidity and can sway index levels, meaning the recent withdrawals may have added to short‑term volatility. A return of foreign money could provide support to stock prices and improve sentiment across sectors.

Going forward, watch the timing of AI earnings releases, global tech sentiment, and the next FPI flow data published by the NSE. Any shifts in foreign investment policy or major AI developments could also signal when capital might flow back into Indian markets.

Excerpt from BusinessLine

Foreign portfolio investors (FPIs) are moving money out of Indian equities as the artificial intelligence-led rally in the US and Asian markets such as South Korea and Taiwan attracts capital, NSE Managing Director and CEO Ashish Chauhan said, adding that he expects some of these funds to return to India when the…
Read the original at BusinessLine

Key takeaways

  • Category: Economy.
  • AI reads the tone as negative (potentially bearish) for the stock.
  • Flagged as a high-impact, market-moving story.

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