# India missed AI wave, market darling run may end 2026-08-19T15:12:18+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet India's exclusion from the artificial intelligence boom may be ending its years-long run as a favoured emerging market for global investors, according to an analysis. The country has not produced a major AI platform or chipmaker, while rivals like China and the US have attracted massive investment in the sector. This structural gap is now raising concerns about India's long-term growth story. Foreign portfolio outflows from Indian equities have accelerated in recent months, with net selling exceeding Rs 1.1 lakh crore since October. The benchmark Nifty 50 index has fallen about 8 per cent from its September peak. Analysts cited in the piece argue that India's stock valuations were already stretched and the absence of AI exposure leaves the market without a new growth catalyst. The Japan Times report contrasts India with Taiwan and South Korea, which have benefited from AI-linked semiconductor demand. It notes that India's IT services companies, while globally significant, are not direct beneficiaries of the AI infrastructure spending that is driving returns elsewhere. The piece concludes that the country's equity market must now rely on domestic consumption and policy reforms to sustain investor interest. ## Indian Opinion Analysis India's stock market rally since 2020 has been fuelled largely by domestic retail investors and foreign portfolio inflows, not by fundamental shifts in export competitiveness. The AI boom has overwhelmingly benefited US-listed firms like Nvidia and Indian IT services companies that supply back-end work, not Indian product firms. For domestic investors, the key risk is valuation: Indian stocks trade at price-to-earnings ratios well above historical averages and peers. The next signal to watch is whether foreign institutional investors continue net selling through the end of this quarter, as they have done in recent weeks. ## Coverage - japantimes.co.jp Led with India's failure in AI and framed market correction as a consequence of that missed opportunity, government not mentioned at all This story was synthesised by AI from the source linked above. Tags: AI, Foreign Portfolio Investors, Japan Times, Nifty 50 Canonical: https://indianopinion.org/india-missed-ai-wave-market-darling-run-may-end/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/india-missed-ai-wave-market-darling-run-may-end/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/