Analysts see Indian equities rebounding as AI shifts global capital
Indian equities have recovered after a market correction, with the Nifty 50 index up nearly 9 percent over the past month, according to CNBC. JPMorgan's Rajiv Batra, head of Asia equity strategy, says foreign investors reducing their underweight positions could bring net inflows of around $115 billion. Jefferies chief executive Rich Handler says Indian valuations are reasonable by any measure and that AI has drawn a disproportionate share of global capital away from India. Meanwhile, Japan's Nikkei 225 and Taiwan's Taiex entered bear territory, and the Nasdaq Composite entered correction territory.
Key facts
- Handler sees significant opportunities in data centres and AI in India.
- Handler says the recent six-week pause in AI investment is healthy.
- Goldman Sachs' Timothy Moe says India has been dubbed the anti-AI trade, with stronger underlying fundamentals.
- South Korea's Kospi deepened its bear market overnight.
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Why it matters
Foreign investor flows could shift sharply, affecting Indian equity prices and regional market performance.
What changed
First published from The Economic Times and CNBC