The end is near, and it’s good news

Foreign investors have been selling Indian stocks for the better part of two years, one of the longest such stretches on record. For most of that stretch, it barely showed. Domestic buying was strong enough to carry the Nifty to a fresh all-time high as recently as January. The real damage came after that peak, a sharp correction that the index has spent the past few months slowly clawing its way back from. Six months on from that high, there is finally a reason to feel differently about where things go next.

A report from brokerage Motilal Oswal, titled 'Beyond the AI Rally: The Great Rotation', says the tide is turning. Foreign investors have pulled roughly $60 billion out of Indian equities over the past 21 months or so, chasing a global AI boom where India was little more than a spectator.