AI market cooling could push investment flows toward India
The post AI market cooling could push investment flows toward India appeared com. Market watchers are paying attention to a larger worldwide trend that could reshape money flowing into Indian stocks. The question is what happens to the boom in artificial intelligence investments. Indian stocks have not kept up with gains seen in other markets this year, partly because the country lacks companies focused purely on AI technology. Major financial institutions have warned about potential AI market corrections, with some analysts comparing the current situation to previous technology bubbles. Analysts at Kotak Institutional Equities believe India’s best chance to get back on the radar of global investors might actually come if the worldwide AI investment craze falls apart. Investment levels in AI companies have reached high levels, with concerns about sustainability and whether this represents a market bubble. Some investors have already started questioning whether AI-related companies are priced too high, though people disagree on whether prices will actually drop. If money does leave expensive AI stocks, some fast-growing Indian businesses that do not yet produce strong cash flows could still draw investment, according to these analysts. Indian stock markets are showing little movement as trading across the region stays largely calm as per Bloomberg. Weak economic figures from the United States and questions about what the Federal Reserve will do next have pushed investors worldwide to take a careful approach, and Indian markets are not immune to this hesitation. IPO market stays strong amid investor interest However, the scene for new stock offerings tells a different story. As reported by Cryptopolitan, the U. S. IPO market has been experiencing its hottest activity since 2021, and India’s primary market is following a similar pattern. Lenskart’s $821 million public listing received strong investor interest despite concerns about how the company was priced. Today, another major offering from Groww worth $747 million starts accepting bids from.