Global investors are increasingly turning to Indian equities as a defensive strategy in response to ongoing market volatility fueled by artificial intelligence-related trading patterns. According to Bloomberg Markets, after underperforming during the recent global AI rally, Indian stocks are attracting fresh capital from investors seeking more stable market positioning during periods of broader market uncertainty.
The shift reflects a broader portfolio rebalancing trend as institutional investors assess risk exposure across different regional markets. India's equities, which lagged during the technology-driven market advance, are now perceived as offering a potential cushion against continued volatility in AI-sensitive sectors and benchmark indices.