FPIs yank Rs 62,800 cr, chief economist warns AI bubble

Foreign portfolio investors sold more than Rs 62,800 crore of Indian stocks in the first two weeks of June, taking total 2026 equity outflows to Rs 2.87 lakh crore. The sell‑off reflects heightened geopolitical tension, weaker global growth outlook and a 6% rupee depreciation, adding pressure on Indian markets and prompting calls for policy support.

Chief Economic Advisor V Anantha Nageswaran said AI‑linked equities have been driven into bubble territory by hype around productivity gains and job displacement. He cautioned investors that the narrative is overstated and that a correction could hit heavily‑valued semiconductor and AI infrastructure firms.

At its June 19 meeting, SEBI will likely restore the stock‑exchange route for open‑market share buybacks that was scrapped in 2023. The proposal trims the execution window to 66 days, mandates 40% utilization early, and bans promoter purchases, aiming to speed capital returns while bolstering investor protection.

Chamundi Die Cast, a US‑export‑heavy auto‑component maker, has relaunched a stake sale to raise up to ₹1,500 crore, hiring KPMG as advisor. The capital will fund growth and professionalise operations amid renewed private‑equity interest in Indian manufacturing driven by Make‑in‑India. If completed, it marks the firm’s first external fundraise, signaling deeper PE entry into auto parts supply chains.

Jio Platforms vaulted to 20th place in WIPO’s 2025 Patent Cooperation Treaty ranking, jumping 320 spots to become the only Indian tech firm in the elite list alongside Huawei, Samsung and Google. The climb showcases the company’s deep‑tech focus, from 5G to AI, and marks a major credibility boost for India’s innovation push.

After US Customs issued administrative guidelines and the RBI cleared banking routes, refunds exceeding $10 billion from the 2025 US‑India tariff dispute are beginning to be repatriated. Digital payment gateways will channel the money, sidestepping costly foreign‑account setups, while exporters must track refunds through freight forwarders or direct importers.

The Finance Ministry agreed to stretch the Securities Markets Code's investigation deadline from 180 to 365 days, give depositories authority to correct fraudulent records, and make supersession of market‑infrastructure boards subject to SEBI’s recommendation. These tweaks aim to ease enforcement pressure while preserving central oversight.

India’s basmati rice and tea shipments to Gulf markets have halted as the Strait of Hormuz remains closed following the US‑Iran clash. Three vessels with 100,000 t of rice sit idle at Kandla, and tea orders from GCC buyers are stuck, threatening export revenues and forex earnings.

JP Morgan's latest commodities research projects gold averaging $6,000 per ounce by Q4 2026, with upside to $6,300 in 2027. The forecast leans on persistent safe‑haven demand amid geopolitical tension and uncertain Fed policy, even though spot prices have slipped to around $4,170.