Mumbai, Nov 5 (IANS) India could attract fresh foreign money if the global artificial intelligence (AI) investment surge loses momentum, veteran banker Uday Kotak said on Thursday.
Speaking in a virtual address, the founder of Kotak Mahindra Bank said heavy borrowing by global companies to fund their AI ambitions has stretched valuations in several cases.
“If that reverses, India could benefit from reverse flows as it builds its own AI capability,” Kotak said.
Indian equities have recovered nearly 10 per cent from their lows in early October even as global AI-linked stocks have come under pressure. Tech-heavy Asian markets have declined more than 7 per cent over the same period.
Global investors have withdrawn a record $29 billion from Indian markets in 2026 amid high valuations, limited AI-linked opportunities and rising energy prices.
Indian equities have held firm despite geopolitical uncertainty, volatile global markets and heavy foreign selling, helped by sustained confidence among domestic investors, Kotak said.
He said India’s valuation gap with other markets has narrowed after the recent correction, making stocks less expensive than they were six to 12 months ago. The country’s stronger growth outlook remains its key advantage, he added.
Kotak advised investors to focus on quality companies and risk management with a medium-term horizon, rather than chasing short-term moves.
Meanwhile, Indian equity markets traded sharply higher on Thursday, with benchmarks Sensex and Nifty rising more than 2 per cent to intraday highs of 79,465.03 and 24,579.90, respectively.
Earlier in the day, the Sensex opened at 78,910.94, up 1,609.54 points or 2.08 per cent, while the Nifty started the session at 24,378.05, up 417.45 points or 1.74 per cent.
The buying momentum came after a fall in crude oil prices and the outcome of the US midterm elections.
–IANS
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