India’s equity markets are underperforming amid limited exposure to AI, prompting fund managers to target volatile high-growth sectors such as renewables, electronics, digital platforms, and financial services to chase market-beating returns.
- Nifty 50 up ~7% YTD vs MSCI Asia ex-Japan +27%, highlighting India’s lag in AI-driven euphoria.
- Foreign investors have pulled $17.6B from Indian equities so far in 2025, while domestic investors have bought ₹5.9T (~$65B), supporting the market.
- Experts from UBS and Amundi see India’s structural growth story and reforms as a long-term opportunity despite near-term AI underexposure.
- Strong IPO activity in Q4 could raise up to $8B, taking 2025’s total fund-raising past $18B, third globally.