Bank of America Global Research projects sustained foreign portfolio investor selling in Indian equities through 2027, driven by relative earnings strength and lower valuations in select Asian AI-exposed markets. This outlook intersects with documented shifts in emerging-market capital allocation patterns, as reflected in primary balance-of-payments data from the Reserve Bank of India and cross-border flow statistics compiled by the IMF. Multiple policy angles warrant examination: India's regulatory tightening on foreign investment limits and taxation, contrasted with fiscal incentives in competing jurisdictions; U.S. monetary policy transmission effects on dollar liquidity; and valuation compression risks following prior rapid inflows. Primary documents such as the RBI's 2024-25 Annual Report highlight moderating FPI inflows alongside rising domestic institutional participation, while IMF External Sector Reports note parallel rotations toward North Asian tech sectors. Coverage that isolates the BofA note risks understating how these flows embed in broader U.S.-India strategic economic dialogues and ASEAN policy competition. Perspectives differ on whether the rotation reflects temporary valuation arbitrage or structural reallocation tied to geopolitical supply-chain realignments.