New Delhi, Oct. 29 -- Foreign portfolio investor (FPI) outflows from Indian equities are being driven by three major factors, including the global rush towards artificial intelligence (AI)-related investment opportunities, rising government bond yields in developed economies and relatively high valuations in Indian stock markets, according to Ranen Banerjee, Partner and Leader, Government and Public Sector (GPS), PwC India.

The observations come amid sustained selling by foreign investors, who have withdrawn a net Rs 2.96 lakh crore from Indian equities so far in 2026.

In an exclusive interview with ANI, Banerjee said that global capital is increasingly chasing AI-related investment opportunities, which remain relatively limited in Indi...