New Delhi, June 19 -- Global fund managers are actively rewriting their playbooks, pulling capital out of Indian equities to chase better opportunities elsewhere. This money is being channelled toward the AI infrastructure and semiconductor powerhouses of the US, Taiwan and South Korea, alongside more tactical emerging markets such as China, market participants said.

Foreign portfolio investors were the biggest sellers in banking and financial stocks in May, pulling out Rs.23,141 crore, Prime Database data showed. Oil & gas was the next major casualty, with net FPI sales of Rs.8,978 crore in May, the highest since December 2024, according to the data.

As the Nifty 50 fell 2% in May, the market rout hit three sectors the hardest: Nifty C...