India misses AI rally as Nifty drops 13% in USD
India's stock market has had a rough 2026, mostly because it's not really part of the global AI hype.
According to Motilal Oswal's latest report, countries like South Korea and Taiwan saw huge gains, up 53% and 33%, thanks to their strong presence in AI hardware and semiconductors.
Meanwhile, India's Nifty index dropped by 13% in USD terms, showing just how much it's missing out.
Foreign investors pulled out $21 billion
If the global focus on AI shifts, foreign investors might start looking at India's growth-focused markets again. That could mean more money flowing in and a boost for the economy.
For now, local institutional investors are still backing Indian stocks (with $5.4 billion invested), but foreign investors have pulled out $21 billion so far this year.
Also worth noting: rising geopolitical tensions have made defense stocks a hot topic worldwide, growing 19% annually since 2021.