Investors globally have started to move towards the Indian markets as the rally in the Artificial Intelligence (AI) has started to losing out. The artificial intelligence frenzy roiling benchmark gauges from Asia to the US making NSE Nifty 50 Index a safe haven of sorts for global investors.
Lack of India’s AI plays remained a hurdle for the investors as they turned to markets like South Korea and Taiwan that delivered stellar returns. Indian market moved 1% or more in the first half of the year on just about one-third of the days which is less than the MSCI Emerging Markets Index and barely more than the S&P 500 Index.
In the month of June, the Nifty 50 outperformed the MSCI Emerging Markets Index by the most since November, while foreign outflows were the smallest in four months.
Indian stock markets recently slipped behind Taiwan and South Korea as these two markets were being driven by AI. However, last month, Indian stock markets regained its fifth position in terms of global market capitalisation due to the correction in both the markets.
Taiwan had displaced India to claim fifth place in the global market capitalisation rankings with the country’s market capitalisation at $4.95 trillion. India was pushed to sixth rank with market cap at $4.92 trillion while the United States remains the world’s largest market with a market cap of $77.96 trillion.
In the recent past, the Indian stock markets remained one of the worst performers. Since the onset of Iran war, the situation worsen due to the sharp spike in the crude oil prices and falling rupee.
However, after the peace talks between US and Iran, Indian markets showed resilience reacting to softening of crude and rupee.
Investors Turn To India As AI Storm Loses Momentum
