Jefferies' Chris Wood Identifies Conditions for Foreign Investors' Return to Indian Equities

Christopher Wood of Jefferies highlights that foreign institutional investors (FIIs) may return to Indian equities if the global semiconductor cycle peaks or if the domestic market experiences a sharp correction. Currently, global capital remains focused on AI-related hardware and semiconductor stocks, limiting inflows into India. Despite foreign caution, domestic investors continue supporting the market with significant inflows. Wood suggests that a potential unwind of the AI trade could redirect funds toward India, benefiting from its strong domestic growth drivers amid global market shifts.