Morgan Stanley: Investors favor AI leaders over India next year
Foreign investors are shifting their focus from India to countries riding the AI wave, like South Korea, Taiwan, Japan, and the US.
According to Ridham Desai from Morgan Stanley India, Korea is seeing earnings growth in the hundreds while Taiwan, Japan, the US and parts of Europe are seeing around 30% to 50%, while India's is around 12% to 14%.
The strong AI-driven investment cycle in these countries is pulling in more global money for at least the next year.
Indian retail investors invest record amounts
Even as foreign money moves out, Indian retail investors have been stepping up and investing record amounts in local stocks.
This steady support has helped keep Indian markets stable during ups and downs.
Desai also mentioned that making it easier for foreigners to invest could bring some of that global money back in the future.