Foreign investors are turning to Indian stocks as global markets grow wary of the artificial intelligence trade.

The shift comes as concerns over AI valuations and returns prompt funds to seek alternatives. Indian equities, backed by a strong domestic economy and corporate earnings, are emerging as a preferred destination. Analysts note that foreign portfolio inflows into Indian markets have picked up in recent weeks. The trend marks a reversal from earlier selling pressure. The move is driven by a mix of factors. Global investors are reducing exposure to AI-heavy tech stocks, which have seen sharp price swings. At the same time, India’s broad-based growth and policy stability offer a safer bet. Market watchers say the trend could continue if global AI sentiment remains weak. Indian indices have shown resilience, supported by local retail participation and steady foreign buying. While risks remain, including global rate uncertainty, the current flow suggests a renewed appetite for Indian assets.