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Why Indian stocks lag Asian peers as AI trade leaves earnings under pressure
Economy
Published on 11 May 2026
AI winners are pulling capital away from India fast
Indian stocks are slipping while several Asian markets post gains, as a global AI investment boom disproportionately benefits chipmakers such as Samsung and SK Hynix. With fewer direct AI-linked revenue streams, Indian corporates face weaker earnings growth and valuation support. Foreign investors, chasing better returns tied to AI supply chains, are redirecting flows away from India.
- Indian stocks are underperforming despite broader gains elsewhere
- AI investment is boosting chipmakers in other Asian markets
- India’s limited direct AI exposure is weighing on earnings growth
- Foreign fund flows are shifting toward higher AI-linked returns
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times