India equities rebound as AI trade unwind draws foreign funds back
After steep losses through the first nine months of the year, Indian stocks are recovering as global investors rotate away from artificial intelligence-linked trades. The rebound is lifting one of Asia’s largest equity markets as easing oil prices and faster earnings growth improve sentiment.
Highlights
- MSCI India index rebounded 11% from October's six-month low, adding over $400 billion in value and nearly erasing 2023 losses.
- India's limited AI sector exposure attracts global capital as the AI trade unwinds, supporting equity market outperformance versus global peers.
- Retreating oil prices and accelerating earnings growth improve sentiment for India's $5.4 trillion equity market, broadening the rally and narrowing earlier losses.
Market rebound gathers pace
As reported by Bloomberg, the MSCI India gauge has rebounded 11% from a six-month low set in October, adding more than $400 billion in value and almost erasing this year’s losses.India’s relative lack of exposure to the AI trade has become a key advantage as that global investment theme unwinds. The shift is helping the country’s equities outperform after capital had previously flowed into AI-linked markets and sectors.
Support from flows and fundamentals
Global funds are also turning more positive on India’s $5.4 trillion equity market. Retreating oil prices are improving the outlook for the import-dependent economy, while accelerating earnings growth is giving investors another reason to increase exposure.The combination of changing global portfolio preferences and stronger domestic fundamentals is improving India’s standing among major markets. That is helping the recent recovery broaden beyond a short-term bounce and narrowing the losses accumulated earlier in the year.
Earlier, we discussed Goldman Sachs forecasts for Asian stocks in 2027, citing earnings growth and AI-related volatility risks.
Latest India News
-
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
