Indian share benchmarks log best day in four months on global AI slump
Indian equity benchmarks posted their biggest single-day gain in four months on Thursday on prospects that India could regain favour among foreign investors after global AI-linked stocks took a beating. Foreign investors have pulled out a record $32.7 billion worth of equities this year, set to be the worst for the benchmark Nifty 50 since 2011, due to a preference for AI-heavy markets over…
Indian equity benchmarks achieved their largest single-day increase in four months on Thursday, driven by optimism that India might regain the favor of foreign investors amid a downturn in global AI-linked stocks. The Nifty 50 and BSE Sensex surged by 1.66% and 2.11%, respectively, to close at 22,997.35 and 74,315.61. The reversal in the AI trade prompted speculation that foreign investors, who withdrew a record $32.7 billion in equities this year, may diversify their portfolios into non-AI markets, with India being a potential beneficiary.
Despite the positive sentiment, Indian companies indirectly linked to the AI sector, such as Sterlite Technologies and MTAR Technologies, experienced sharp declines. Meanwhile, IT companies and financials led the market gains, with IT firms rising 1.8% and major banks posting gains ahead of their quarterly earnings.
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