In recent months, there has been a slowdown in the Indian stock market, leading investors to believe that once global tensions and tariff disputes end, the market will regain its momentum. However, market expert Sunil Subramaniam believes the picture is not that simple. According to him, the market has not been affected only by war or tariffs; there are several other structural reasons as well. He explained that Foreign Institutional Investors (FIIs) have been selling in the Indian market since September 2024, even though there was no major war or tariff dispute at that time. The main reasons behind this are the high valuation of Indian stocks and India's relatively weak position in the AI-based global investment theme. Foreign investors have prioritized markets like China, Taiwan, South Korea, and the US, where opportunities in artificial intelligence and technological development appear greater. Sunil says that even if the Iran-US dispute resolves and crude oil prices fall, the market will not see a "runaway rally." This may provide some relief to the market, but for a long and strong uptrend, the return of foreign investors and renewed confidence in India's growth prospects will be necessary. Until then, the market may continue to trade within a limited range with fluctuations.
(Share Manthan, 01 June 2026)
