India could attract about $25 billion in foreign equity inflows if global investors rebalance their portfolios, as fund managers increasingly look for refuge from volatility in AI-heavy Asian markets, according to HSBC.
Such a shift would mark a sharp turnaround for Indian equities after months of foreign capital flowing into markets seen as bigger beneficiaries of the artificial intelligence boom. HSBC believes those trades are becoming increasingly crowded, while heightened volatility across AI-linked markets makes India a more attractive diversification bet for global investors.
