India"s equity market is primarily driven by domestic investors, who have compensated for $14 billion in net foreign selling since September. The current correction in the Indian stock market presents a significant opportunity for investors, as the country is well-insulated from potential tariff-related announcements from the incoming Trump administration.

India remains the most under-owned market by foreign investors among emerging markets, with foreign institutional investor (FII) ownership at just 17 percent. Expensive valuations have deterred many foreign investors from accumulating Indian equities under such conditions. It is suggested that India could benefit from a protective "moat" should international trade tensions escalate again.