Now Reading: Indian stocks lag global peers as AI flows and valuations weigh
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Indian stocks lag global peers as AI flows and valuations weigh
Indian stocks lag global peers as AI flows and valuations weigh
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…
The Story in Brief
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.
The Indian Opinion
The easy story that India has simply lost the global race to AI is too narrow. The market’s weaker showing also reflects foreign selling, valuation correction and geopolitical risks. The opposite claim, that domestic flows guarantee a quick rebound, is just as careless. Investors should watch FY27 earnings, foreign flows and the rupee together. If earnings do not reach the projected 13% to 15%, the recovery case will need revising.
Sources (2): livemint.com, rediff.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
