India’s equity market is emerging as a potential hedge against the downturn in artificial intelligence investments as investors seek refuge after a severe sell-off in the sector. Rajiv Batra of JPMorgan estimates that foreign investors neutralizing their underweight position in Indian stocks could generate around $115 billion in inflows. The Nifty 50 has gained nearly 9% over the past month, while markets heavily exposed to AI, including the United States, Japan, South Korea and Taiwan, have declined sharply. Earnings growth among listed Indian companies is running above 20%, and foreign investors have returned to net buying after selling more than $31 billion in stocks through October. Bernstein disputes the hedge thesis, citing India’s expensive valuation at 18.6 times forward earnings, compared with 9.3 times for China and 7.9 times for Brazil.
Source: Read the original article
