Indian Stocks Seen as Top Hedge Against AI Risks by Global Funds

Global investment funds are increasingly looking at Indian stocks as a way to protect themselves against potential downsides in the artificial intelligence sector. This shift in perspective comes as the initial excitement surrounding AI begins to cool off. Simultaneously, Indian stock valuations are returning to levels closer to their five-year average, after outperforming many other markets earlier in the year.

India's consumption-driven economy is once again attracting favor from investors. Reinforcing this trend, major tech companies like Amazon and Microsoft recently pledged to invest a combined $52 billion in India over the next few years. A significant portion of this investment is earmarked for building AI infrastructure within the country.