In the context of artificial intelligence trade reshaping the global investment landscape, India appears to be one of the biggest losers. The reason for this situation is far more than the overvaluation of the Indian stock market and the slowdown in corporate profit growth. Previously, global investors were heavily involved in India, but now capital is flocking to the Indian market's scarce racetrack: the fields of chip manufacturing, computing power infrastructure, and artificial intelligence models. Although India has talent, market demand, and a huge digital economy, leading local companies are rarely directly involved in the construction of related industries, and increasingly, stock market trends can only rely on the domestic demand consumption circuit. Gary Duggan, CEO of the Global Chief Investment Officer's Office, said, “This is not a short-term correction of buying on dips. The market has yet to fully absorb it: the problem with the Indian stock market is not that profits fall short of expectations, but that the long-term valuation logic of companies has fundamentally changed, and the market must re-evaluate the development prospects of these companies ten years from now.” Goldman Sachs data shows that as fund managers continue to reduce their holdings, foreign investors are leaving India at an accelerated pace, and the foreign shareholding ratio has fallen to a 14-year low, falling below the size of local Indian institutional holdings for the first time in more than 20 years. The situation in India's capital market is extremely uneven. After the low point of the epidemic, the market value of India's stock market soared, reaching a record high of 5.73 trillion US dollars in September 2024. At that time, India's NIFTY50 index led the world's major stock markets. However, as the market worried that valuations were too high, inflows of foreign capital began to fluctuate sharply, compounded by the rise of a boom in artificial intelligence, and capital outflows accelerated. Since peaking in market capitalization, the Indian stock market has evaporated $924 billion in market capitalization.

In the context of artificial intelligence trade reshaping the global investment landscape, India appears to be one of the biggest losers. The reason for this situation is far more than the overvaluation of the Indian stock market and the slowdown in corporate profit growth. Previously, global investors were heavily involved in India, but now capital is flocking to the Indian market's scarce racetrack: the fields of chip manufacturing, computing power infrastructure, and artificial intelligence models. Although India has talent, market demand, and a huge digital economy, leading local companies are rarely directly involved in the construction of related industries, and increasingly, stock market trends can only rely on the domestic demand consumption circuit. Gary Duggan, CEO of the Global Chief Investment Officer's Office, said, “This is not a short-term correction of buying on dips. The market has yet to fully absorb it: the problem with the Indian stock market is not that profits fall short of expectations, but that the long-term valuation logic of companies has fundamentally changed, and the market must re-evaluate the development prospects of these companies ten years from now.” Goldman Sachs data shows that as fund managers continue to reduce their holdings, foreign investors are leaving India at an accelerated pace, and the foreign shareholding ratio has fallen to a 14-year low, falling below the size of local Indian institutional holdings for the first time in more than 20 years. The situation in India's capital market is extremely uneven. After the low point of the epidemic, the market value of India's stock market soared, reaching a record high of 5.73 trillion US dollars in September 2024. At that time, India's NIFTY50 index led the world's major stock markets. However, as the market worried that valuations were too high, inflows of foreign capital began to fluctuate sharply, compounded by the rise of a boom in artificial intelligence, and capital outflows accelerated. Since peaking in market capitalization, the Indian stock market has evaporated $924 billion in market capitalization.