FIIs' India Comeback? Jefferies' Chris Wood Reveals 2 Triggers

• Christopher Wood of Jefferies identifies two key conditions for foreign investors (FIIs) to significantly reinvest in the Indian stock market.
• First trigger: A peak in the global semiconductor and AI capital expenditure cycle, shifting investor focus away from these sectors.
• Second trigger: A sharp correction in the Indian stock market, which FIIs might view as a buying opportunity, especially if domestic mutual fund investments decline.
• FIIs have net sold approximately $32.7 billion from Indian equities since Oct 2024, though they made slight purchases of $1.7 billion in Feb 2026.
• Despite FII outflows, strong domestic investment via SIPs, mutual funds, and NPS continues to support the Indian market, which shows robust economic fundamentals and strong earnings growth projections.