I just reviewed some numbers that are quite striking regarding what is happening in the Indian stock market. In just over three months, global funds have withdrawn nearly $19 billion. It’s a massive pullback that reflects how international capital is being very selective right now.

What’s interesting is understanding why. While the whole world is obsessed with artificial intelligence and redirecting capital toward those ecosystems, India is losing prominence. Additionally, the geopolitical situation between the United States and Iran has created additional pressure on the markets, and that’s affecting risk appetite toward emerging economies.

But here’s what catches my attention the most: domestic funds are trying to sustain the stock market. This year, they have already injected $31 billion through mutual funds and institutions. It’s a significant effort, but honestly, it’s still insufficient to offset the volume of outflows we’re seeing from foreign capital.

In other words, the Indian stock market is in a tricky position. Local money is trying to prop up the ship, but the major global players are already shifting their pieces to other boards. It’s a reminder of how the stock market responds quickly to changes in global risk appetite.