The recent correction and volatility in AI- and semiconductor-driven markets, including the US, Taiwan, South Korea and Japan, are prompting global investors to rotate capital towards relatively better-valued markets like India. India’s equity benchmarks, BSE Sensex and NSE Nifty, outperformed tech-heavy global indices by gaining about 2 per cent in July. After months of heavy selling, foreign institutional investors (FIIs) turned net buyers in July with a cumulative purchase worth Rs 20199 crores, aided by moderating valuations, an improving corporate earnings outlook and stable currency. Analysts view the pullback in global technology stocks as a profit-booking phase rather than the end of the AI rally, but it has reduced the intensity of FII selling in India, with investors favouring sectors such as financials, healthcare, industrials and IT services. Feroze Azeez, Joint CEO, Anand Rathi Wealth Limited, said uncertainties in Taiwan and South Korea have prompted a reallocation of foreign capital towards India, adding that sustained market performance will depend on corporate earnings and economic fundamentals. He noted the Nasdaq corrected around 10 per cent, Taiwan's index fell about 18 per cent during July, while Japan's Nikkei and South Korea's Kospi declined more than 15 per cent and 65 per cent respectively from their recent highs. Sunny Agrawal, Head - Fundamental Research at SBI Securities, said global investors are taking profits in AI-heavy markets after