Indian equities appear to be entering a more favourable phase after a prolonged period of consolidation, with easing global headwinds, resilient corporate earnings and a reversal in foreign flows improving the market setup. Ritesh Taksali, Chief Investment Officer at Edelweiss Life Insurance, believes the maturing AI-led trade could further work in India’s favour as global investors look beyond markets that have benefited disproportionately from the semiconductor and AI cycle.
Taksali points out that FPIs invested around ₹20,000 crore in Indian equities in July, followed by another ₹12,921 crore in the first week of August. With the Nifty’s trailing P/E now around 20.8x—below its seven-year median and 10-year average—India’s valuation premium has also become more reasonable.
