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Why are foreign investors leaving Indian stocks? Bernstein flags ‘bygone’ large-cap businesses, low AI exposure
22 Sept 2026 · LiveMint Markets
In September, overseas investors began selling Indian equities, influenced by concerns over high valuations and limited AI market exposure. Bernstein highlights that many large Indian firms are struggling to adapt, diminishing their attractiveness to foreign investors amid changing technologies.
The analysis
Because the driver here is macro rather than company-specific, the read-through is to index-level positioning rather than to any single name — correlations tend to rise when the whole market faces the same signal.
Market context
- This is a market-wide development — its reach goes beyond any single stock.