For the last two years, the Indian stock market has looked like a silent desert. Nifty’s leading stocks are lagging and foreign investors have completely avoided India. But now the market mathematics is going to change rapidly. The bubble of Artificial Intelligence (AI) and tech stocks which was growing in the global market is now bursting. The huge fall in chip stocks in countries like Taiwan and South Korea can become a ‘lifeline’ for the Indian stock market. There is a famous dialogue from the recently released film Dhurandhar – ‘I am injured, that is why I am fatal.’ On the same lines, the Indian market, which was experiencing ups and downs in terms of returns for the last two years, is now going to become the safest and profitable destination for foreign investors.
Why did foreign money go out of India?
If we look at the figures, Foreign Institutional Investors (FIIs) have withdrawn Rs 1.66 lakh crore in the year 2025 and so far in 2026, they have made a huge withdrawal of about Rs 2.7 lakh crore. Actually, this money was coming out of India and going to the markets of America’s Nasdaq, Taiwan and South Korea. In these countries, AI chip companies like Samsung and SK Hynix made huge profits of 200 to 400 percent. S., CIO of ICICI Prudential Mutual Fund. Naren says that when companies in Taiwan and Korea started showing such magical returns, foreign investors started leaving India’s market with a stable corporate growth rate of 10 percent and placing bets there.
Dangerous game of buying shares by taking loan
Now the picture of the global market is changing. Whenever common people take loans and start investing money in the stock market, understand that it is a sign of the bubble bursting. S. According to Naren, in South Korea people were buying chip shares by taking loans against their insurance policies, while in Taiwan, personal loans were being taken for shares. The huge fall in semiconductor shares on June 5 is the first bell of this danger. Geojit Investments strategist Dr. V.K. Vijayakumar believes that as soon as this global AI fever subsides, foreign money will return to Dalal Street.
Why is this a golden opportunity for Indian investors?
Now the question arises that what effect will this entire global upheaval have on the common Indian investor? Experts believe that this is not the time to panic, but to remain firm in the market. According to Vikas Khemani of Carnelian Asset Management, Korea and Taiwan are dependent on just one technology or product (semiconductor), while the Indian economy rests on several strong domestic pillars like banking, consumption and IT.
Additionally, due to foreign selling in the last two years, Indian stocks have become about 10 percent cheaper than their historical average valuations. HDFC Securities MD Dheeraj Raili says that as soon as external uncertainties like US-Iran tension reduce, Nifty can touch new record levels. This current market situation should be seen as an excellent opportunity. Due to which India was lagging behind for some time, now the same domestic strength will help the market’s ‘wounded lion’ Nifty to take a big leap.
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Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
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