# Indian stocks lag global peers as AI flows and valuations weigh

2026-08-06T18:20:53+00:00 | Business & Economy | Indian Opinion Desk

Corroboration: 1 independent outlet

The Nifty 50 TRI fell 0.4% in the year to 30 June, trailing South Korea’s Kospi, Taiwan’s TAIEX, Japan’s Nikkei and the US Nasdaq. Livemint, citing Abakkus Investment Managers, attributes the gap to capital moving into artificial intelligence and semiconductor markets, foreign selling, geopolitical risks and valuation pressure. The Nifty gained 2.4% in the latest month, while the Kospi fell 22.2%. Rediff, citing BNP Paribas’s Kunal Vora, says the worst phase for Indian equities may have passed, though a sharp rally is unlikely. He expects earnings growth of 13% to 15% in FY27 to support healthy double-digit returns. Both accounts point to domestic demand, diversified sectors and steadier valuations as supports, while warning that foreign investors need earnings growth and macroeconomic stability before returning.

## Coverage

- livemint.com <https://www.livemint.com/money/personal-finance/indian-equities-lag-south-korea-japan-and-us-markets-new-study-reveals-why-long-term-investors-should-not-worry-11786013356820.html>
- rediff.com <https://www.rediff.com/business/interview/worst-phase-for-equities-appears-to-be-behind-us/20260807.htm>

Tags: AI investments, foreign investors, Indian equities, SIPs, stock markets
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