INDIA’S underperformance against major global markets has been driven largely by the global artificial intelligence (AI) rally and not necessarily by weakness in the broader domestic economy, according to Motilal Oswal Financial Services’ latest strategy report, The Eagle Eye – May 2026.
According to the report, markets such as South Korea, Taiwan Province of China and the United States have significantly outperformed due to their strong exposure to the global AI trade, particularly in AI hardware and semiconductor-linked businesses. “Since CY24, India’s headline underperformance has been largely driven by global AI trade, where markets like Korea, Taiwan Province of China and the US have significantly outperformed,” the report said. The brokerage said India’s lower participation in the AI-led rally was largely ‘structural’ in nature. “The divergence is structural. India’s lower exposure to AI hardware and the narrow, concentrated nature of the global AI rally have limited participation, thereby overstating overall market weakness,” the report noted. — ANI
#TheGlobalNewLightOfMyanmar