AI Market Cooling May Redirect Capital to Indian Equities as IPO Activity Thrives
Global investors are reassessing exposure to overheated AI stocks amid bubble warnings from major institutions. Kotak Institutional Equities suggests India could benefit from any capital rotation, with its growth-oriented companies offering alternative opportunities despite weaker cash flows.
Regional markets remain subdued as US economic uncertainty persists, though India's primary market shows resilience. The IPO pipeline mirrors the US rebound, marking the strongest activity since 2021 - a divergence from secondary market lethargy that underscores selective risk appetite.