India’s lack of AI trade pushes investors towards volatile high-growth bets

Indian equity markets‘ underperformance, exacerbated by limited exposure to artificial intelligence, is prompting fund managers to adopt volatile high-growth strategies to beat standard market returns, even as foreign investors retreat.

The benchmark Nifty 50 index has risen almost 7% this year, a fraction of the nearly 27% surge in the MSCI Asia ex-Japan index, fuelled by AI-driven euphoria.

“Markets which caught up, like China, Korea, US, bounced back largely on that technology trade,” Sunil Singhania, founder of Abakkus Asset Manager, told the…