In 2026, foreign portfolio investors (FPIs) have pulled out ₹1,89,991 crore (approximately $228 billion USD) from Indian equities, reflecting a cautious stance amid global uncertainties and tight liquidity. The trend of net selling has intensified, with ₹58,869 crore sold in April alone, following ₹1,17,775 crore in March. The primary driver of these outflows is the global shift towards high-growth AI stocks in markets like the US, South Korea, and Taiwan, which are attracting significant capital. Experts, including Mohit Gulati, CIO of ITI Growth Opportunities Fund, argue that this selling is not indicative of India's economic health but rather a reaction to the opportunity cost of not investing in US tech stocks. They suggest that a correction in AI stock valuations could potentially reverse the outflow trend. Despite the current selling, analysts maintain that India's fundamentals remain robust, offering potential opportunities for patient investors.