The global equity markets are witnessing a significant shift. South Korea ( KOPSI ) down by 29% In last one month, while leading AIdriven companies such as Nvidia, Broadcom, and even new debutant like SpaceX have come under pressure. Investors are beginning to question whether valuations had run too far ahead of
fundamentals.

For almost two years, Artificial Intelligence dominated investor imagination. The market believed AI would transform every industry, This optimism pushed valuations of AI companies to unprecedented levels. Capital flowed aggressively into semiconductor manufacturers, AI infrastructure providers and data-center operators.
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At the same time, another important trend is emerging globally. Investors are beginning to realise that the future may not be AI replacing IT, but rather AI + IT.

The trend has now started reversing. For the first time in several months, India has witnessed a net FII inflow of nearly US$3 billion, equivalent to around ₹30,000 crore. This marks an important change in investor sentiment and suggests that global capital is once again recognising India's long-term potential.

The reason is simple. While several global markets became increasingly expensive, Indian equities spent nearly two years consolidating. During this phase, corporate earnings continued to grow, Many companies delivered positive Q1 Earnings, stock prices remained relatively subdued. As a result, valuations have gradually become more attractive and fundamentally supported.

Today, global investors appear to be rediscovering an old investing principle: buy quality businesses at reasonable valuations rather than chasing the most popular theme.

The return of foreign capital into India could be the beginning of that next chapter.