India stages a comeback as AI trade gets crowded: What fund flows reveal

India is re-emerging as a portfolio diversifier just as global investors crowd back into artificial intelligence-linked markets, creating an early test of whether the year’s dominant equity trade can continue delivering returns.

Inflows into the AI ecosystem strengthened for a second week after a recent correction, according to a report by Elara Capital. Global emerging market funds attracted $4 billion, the most in six months, as the EM index rebounded from its 200-day moving average.