Foreign investors have pulled $30 billion out of Indian equities this year, but a handful of domestic companies supplying semiconductors, cables, transformers, and servers to the global AI industry have delivered returns of 45% to over 200%
Indian stock markets are down 8 to 10% so far in 2026, and foreign institutional investors have been selling at a pace that has pushed their holdings in NSE-listed companies to a 17-year low of 15.8%. The headline numbers paint a difficult picture. But beneath them, a quiet group of companies has been running a very different story.
The Semiconductor Play
Surat-based Acutaas Chemicals, which makes specialty photoresist chemicals used in semiconductor circuits, has seen its shares rise 93% this year. In February, the company acquired a 75% stake in South Korea-based Indichem Inc., turning it into a joint venture targeting the global semiconductor specialty chemicals market. CG Power and Industries Solutions, which operates an outsourced semiconductor assembly and testing facility in Gujarat through its subsidiary CG Semi, has gained 45%.
Power and Infrastructure
Data centres consume enormous amounts of electricity, and the companies supplying the equipment to manage it have benefited accordingly. Shares of GE Vernova India, Hitachi Energy India, and Quality Power have risen between 61% and 86% this year. Transformer and electrical infrastructure providers are essential to keeping data centres running reliably, and management commentary from several of these companies points to sustained demand ahead.
Cables, Servers, and Precision Components
The AI supply chain runs deeper still. Polycab India and RR Kabel, which supply cables and wiring for power infrastructure, have gained 25 to 71%. Netweb Technologies, which designs and deploys AI servers, is up 59%. MTAR Technologies, which makes precision components for semiconductor manufacturing, has more than tripled. E2E Networks, which provides GPU cloud services, has more than doubled.
Foreign investors appear to have noticed. Despite the broad selloff, FIIs have actually increased their stakes in many of these companies, raising holdings in MTAR Tech by over 5 percentage points, in Polycab by 3.4 points, and in Acutaas by 2.8 points in the March quarter alone.
