India Seen Near End of Foreign Investor Exodus
India may have already witnessed the worst of foreign investor outflows despite concerns over rising oil prices and economic pressures, according to global wealth manager Lighthouse Canton. Foreign investors have withdrawn a record $30 billion from Indian equities in 2026, while markets such as South Korea and Taiwan attracted strong inflows due to their exposure to the booming artificial intelligence and semiconductor sectors.
However, Lighthouse Canton believes India’s limited direct exposure to the AI trade could become a long-term advantage. The firm argues that investors may be overlooking opportunities in sectors that support AI infrastructure, including power, data centres, electrical equipment, engineering, capital goods, healthcare, defence, and banking. It said India offers a broader investment landscape beyond technology and semiconductor-focused markets.
The outlook remains dependent on oil prices staying near current levels. Lighthouse Canton warned that crude prices above $120 per barrel could threaten India’s economic stability and corporate earnings. Nevertheless, if geopolitical tensions ease and oil prices decline, India could emerge as one of the biggest beneficiaries, potentially attracting renewed foreign investment and boosting market sentiment.
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