India stocks jump 11% from October low as AI trade cools
Why it matters: Foreign investors bought a net $8.5 billion of Indian shares in November, putting the market on track for its biggest monthly inflow in six years.
Indian stocks have rallied 11% from a six-month low hit in October, adding more than $400 billion in value as global investors rotate out of crowded artificial-intelligence trades and back into markets with stronger earnings momentum. The rebound has nearly erased India’s losses for 2026. The MSCI India gauge has benefited from the country’s relatively low exposure to the AI trade, while easing oil prices and faster profit growth have improved sentiment. Overseas investors have bought a net $8.5 billion of Indian shares in November, according to Bloomberg-compiled data, cutting this year’s outflow to about $22 billion. Bank of America data showed active long-only funds still remained $74 billion underweight India versus the benchmark, suggesting room for further inflows.