India's benchmark indices fall sharply

Since January, India's key benchmark indices have slipped nearly twelve percent, according to LSEG data, despite the country's economic growth remaining resilient.

Sitharaman blames easy exits and liquidity

Finance Minister Nirmala Sitharaman told CNBC that excess liquidity in India's equity market has contributed to underperformance. Because of the ease of liquidity, ease of availability, people are even exiting easily from equities.

“Because of the ease of liquidity, ease of availability, people are even exiting easily”

Foreign investors flee to AI markets

Foreign portfolio investors have sold over thirty three billion dollars of direct Indian equities this year. India has gained a reputation as an anti-artificial intelligence trade, while Taiwan and Korea attract strong investment flows.

India's market share shrinks in Asia

Taiwan now has the largest market weighting in the MSCI Asia Pacific ex-Japan index at twenty nine percent, while Korea is second at twenty two percent.

Capital outflows pose biggest 2027 risk

Sitharaman said continued capital outflows are one of the biggest risks for India in twenty twenty-seven. She added that India wouldn't be hurt from any spillover if the global artificial intelligence bubble burst.