Lighthouse Canton says global chip-stock selloff drives FII capital back toward India equities

Lighthouse Canton flagged a sharp selloff in global semiconductor and memory stocks, citing position-driven concentration risk rather than weakening demand.

• Foreign investors sold about USD 30.5 billion of South Korean equities in June 2026, marking the largest monthly outflow in over 25 years.
• Taiwan equities saw USD 18.3 billion of foreign selling, followed by another USD 13 billion in July to date.
• It expects part of that capital to rotate back to India, driven by improving entry valuations and a strengthening private capex cycle.
• June 2026 indicators cited include GST collections up 13.9% year-on-year, CPI inflation at 4.38%, and passenger vehicle sales up 24%.