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Global Funds Eye India Beyond AI
15 Dec, 2025
Summary
- Fund managers see India as a hedge against AI risks and valuations.
- India's equity markets are expected to rebound strongly in 2026.
- Strong GDP growth and domestic factors support India's market outlook.
Global fund managers are exploring Indian markets as a hedge against potential risks and steep valuations in AI-driven investments. As concerns about AI stocks like Nvidia and AMD begin to impact Wall Street, a shift towards diversification is anticipated, with India emerging as a preferred destination.
Experts predict a strong rebound for Indian equities in 2026, citing India's low correlation with tech-heavy markets. Fund managers see India as a diversifier, benefiting from domestic growth drivers, supportive policies, and stabilization in corporate earnings. This domestic strength is seen as a crucial advantage.
While the Nifty 50 has shown positive returns, its performance lags behind global indices. However, a combination of robust GDP growth projections, a supportive central bank, and reasonable earnings expectations are poised to drive significant upside on Dalal Street in the upcoming year.
