After record $29 billion selloff, FIIs buying India again. Chris Wood explains why

Foreign investors bought a net $1.8 billion of Indian equities through July 15, marking their first monthly purchase since February after a record $29 billion selloff. Jefferies' Chris Wood attributed the shift to rotation out of the AI trade, noting Korea's MSCI Emerging Markets weighting surged from 9% to 23.7% in the first half of 2025. Wood sees a tactical case for Indian largecaps as the Nifty 100 trades at a 33% forward PE discount to the Nifty Midcap 150, well above the 10-year average of 20%, while domestic SIP flows at an annualised Rs 3.63 trillion continue to provide a strong buffer against foreign selling.