BofA Sees Foreign Exodus from Indian Stocks Extending Into 2027

BofA Global Research expects foreign selling in Indian equities to extend into next year as investors favor Asia’s AI winners with stronger earnings prospects and cheaper valuations. The note points to continued relative underperformance risk for Indian stocks versus AI-linked markets elsewhere in Asia. Impact is mostly sentiment- and flow-driven rather than a direct fundamentals shock.

Analysis

BofA Global Research expects foreign selling in Indian equities to extend into next year as investors favor Asia’s AI winners with stronger earnings prospects and cheaper valuations. The note points to continued relative underperformance risk for Indian stocks versus AI-linked markets elsewhere in Asia. Impact is mostly sentiment- and flow-driven rather than a direct fundamentals shock.