📷 Image: Wikimedia Commons / Skratata69
Business
India’s Markets Hold Steady as Foreign Investors Return Amid Global AI Crash
✍️ NDTV Top
🗓 06 Nov 2026, 03:49 PM
👁 6
While global markets plunged after a sharp AI‑driven sell‑off, India’s major indices stayed flat, buoyed by a sudden influx of foreign institutional capital.
The Indian equity market showed remarkable resilience on Tuesday as the Nifty 50 and Sensex remained largely unchanged, despite a steep sell‑off in global markets triggered by concerns over artificial‑intelligence‑related valuations.
Analysts attribute the stability to a fresh wave of foreign institutional investors (FIIs) who began buying shares after a brief pause. The FII inflows, which have been on the rise since early March, helped offset the pressure from domestic retail investors who had been selling.
The Reserve Bank of India and market participants note that the return of FIIs signals confidence in the Indian economy’s fundamentals and the regulatory environment. The inflows are expected to provide a buffer against further volatility.
While the U.S. and European indices suffered steep declines, India’s market closed with a marginal gain, underscoring the importance of foreign capital in sustaining domestic growth.
Investors are now watching the next earnings season closely, as the market seeks to confirm whether the FII support will translate into sustained momentum.
Analysts attribute the stability to a fresh wave of foreign institutional investors (FIIs) who began buying shares after a brief pause. The FII inflows, which have been on the rise since early March, helped offset the pressure from domestic retail investors who had been selling.
The Reserve Bank of India and market participants note that the return of FIIs signals confidence in the Indian economy’s fundamentals and the regulatory environment. The inflows are expected to provide a buffer against further volatility.
While the U.S. and European indices suffered steep declines, India’s market closed with a marginal gain, underscoring the importance of foreign capital in sustaining domestic growth.
Investors are now watching the next earnings season closely, as the market seeks to confirm whether the FII support will translate into sustained momentum.