Why India’s Nifty 50 Is Holding Steady Despite Asian Market Selloff

India’s Nifty 50 held in positive territory on Wednesday even as chip-heavy Asian benchmarks fell more than 3%, with tax-relief expectations, returning foreign capital and limited AI exposure cited as supports. Foreign funds had spent much of the year rotating out of India into Korean and Taiwanese AI trades, and that underweight positioning now appears to be cushioning the index from the regional selloff. The divergence matters because it signals a possible reversal in cross-border flows back toward Indian equities after months of outflows. What to watch next is whether foreign buying persists and whether New Delhi delivers on the tax relief hopes underpinning the move.