India could gain foreign inflows if AI boom corrects, Kotak says
Global concerns about stretched artificial intelligence valuations are sharpening the search for markets with relatively lower prices and domestic growth potential. India could benefit from that shift if investors pull back from overheated AI trades, according to comments by Uday Kotak ahead of the Diwali festival.
Highlights
- Uday Kotak states India could attract foreign inflows if the global AI-driven equity rally sees a correction due to overvaluation concerns.
- Global firms’ rising leverage to fuel AI investments is leading to overvaluation, potentially triggering a capital rotation into markets like India.
- A reversal of flows from AI-linked assets could favor India, offering attractive valuations and benefiting from its growing domestic technology sector.
Valuation concerns shape India outlook
As reported by Bloomberg, Uday Kotak says India may emerge as a beneficiary of foreign investment flows if the global artificial intelligence boom unwinds and investors look for markets with more attractive valuations.In a virtual address ahead of India's Diwali festival, the billionaire founder of Kotak Mahindra Bank Ltd. says the leverage global companies are taking on to fund their AI ambitions is also leading to significant overvaluation in many cases.
He adds that as India continues to build its own AI capability, the country may also benefit from a reverse flow of capital if such a shift materializes.
Potential implications for Indian markets
If global investors begin rotating away from richly valued AI-linked assets, India could stand to gain as a large market offering a different valuation profile and a domestic technology growth story.Kotak's remarks point to a broader market argument that any correction in AI-driven trades may not only reshape capital allocation globally, but also improve the appeal of destinations such as India for cross-border portfolio flows.
Our earlier coverage of the U.S. tech sell-off linked to artificial intelligence noted that investors were beginning to reassess stretched valuations across chipmakers, data-center suppliers and AI infrastructure financers. The pullback coincided with oil jumping to $110 a barrel, adding inflation fears and raising concerns that higher-for-longer rates could keep pressure on leveraged AI trades and encourage some portfolio reallocation to other markets.
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
