Suryaa Business Desk: Global selling pressure on Artificial Intelligence (AI) and semiconductor shares has shifted international investor focus toward traditional Asian equity markets. Following developments related to U.S. interim elections, concerns over strict regulations and stagnation in the AI sector have prompted global funds to divest from high-valuation tech companies, including Samsung, SK Hynix, and Intel.
India has emerged as a primary beneficiary, as the impact of AI-related stocks remains limited in the country. Foreign Institutional Investors (FIIs) have increased their activity, with approximately 1.9 billion dollars (over 16,000 crore rupees) in net foreign funds entering the Indian market last week. Consequently, the Nifty-50 benchmark index recorded an 8.6 percent gain, marking its best weekly growth since 2021. Foreign buying is concentrated in banking, finance, healthcare, pharmaceutical, and consumer sectors.
Simultaneously, global hedge funds are showing interest in China and Hong Kong markets due to attractive low valuations and easing trade tensions. As concerns regarding an AI bubble grow, investors are diversifying their portfolios. Portfolio managers identify India and China as safe alternatives for non-AI investments due to their liquidity. Declining crude oil prices and controlled inflation are further supporting this growth, with expectations for continued foreign capital inflows into Asian markets.
