Foreign portfolio investors (FPIs) have shifted to net buyers of Indian equities in 2026, driven by diversification into non-AI sectors, according to Vikas Gupta, CEO of OmniScience Capital. This positive trend comes amid ongoing global inflation pressures and a complex market environment, signaling renewed foreign interest in India’s stock market, per livemint.com.
Vikas Gupta highlighted that the inflows are supported by strong growth sectors outside of artificial intelligence, reflecting a broader investment approach. The shift follows a period of cautious FPI activity and aligns with a more selective investment strategy. Gupta’s insights were shared in an interview published on August 29, 2026, emphasizing the importance of sector diversification in attracting foreign capital.
This development contrasts with concerns raised by Hemant Kanawala, head of equity at Kotak Life Insurance, who noted that much of the Indian stock market remains fully to richly valued. Despite high valuations, the inflows suggest confidence in India’s underlying economic strengths and the potential for moderate returns. The focus on non-AI sectors may help balance risks associated with concentrated tech investments, offering a diversified growth outlook.
The positive FPI trend was reported on August 29, 2026, by livemint.com, with OmniScience Capital’s CEO Vikas Gupta providing detailed commentary on the market dynamics. This marks a notable shift in foreign investment patterns, reflecting evolving strategies amid global economic uncertainties.