Now Reading: Indian equities trail global peers as AI flows reshape markets
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Indian equities trail global peers as AI flows reshape markets
India’s Nifty 50 TRI returned minus 0.4% in the year to 30 June, trailing South Korea’s Kospi, Taiwan’s TAIEX, Japan’s Nikkei and the US Nasdaq, according to an Abakkus Investment Managers study…
The Story in Brief
India’s Nifty 50 TRI returned minus 0.4% in the year to 30 June, trailing South Korea’s Kospi, Taiwan’s TAIEX, Japan’s Nikkei and the US Nasdaq, according to an Abakkus Investment Managers study reported by Livemint. The indices returned 103.2%, 83.2%, 56.7% and 20.1%, respectively. Abakkus attributed India’s weakness to investor money moving into AI, semiconductor and data-centre stocks, along with valuation pressure, geopolitical uncertainty, tariff concerns and rupee depreciation.
The study said India’s domestic demand, demographics, infrastructure spending, economic formalisation, policy continuity and foreign exchange position support its longer-term outlook. Domestic mutual fund and SIP flows have supported mid-cap and small-cap stocks. The Nifty gained 2.4% in the latest month covered, while the Kospi fell 22.2%. Abakkus said foreign investors could return to India over the next six to 12 months if capital rotates away from AI-linked markets.
The Indian Opinion
The easy story is that India has either been abandoned by global investors or is guaranteed to outperform next. Neither claim follows from one year of returns or one investment manager’s study. AI enthusiasm explains some flows, but valuation, earnings and currency risks still matter. Domestic SIP money can cushion falls, not prevent them. Investors should watch whether foreign flows return and whether large Indian companies deliver earnings growth, rather than treat a projected six to 12-month rotation as a forecast.
Source: livemint.com
This story was synthesised by AI from the source linked above.
