Global Investors Underweight India, Fear Missing Upside Surprise: Kotak's Pratik Gupta

• International investors are concerned about being underweight if India rebounds, according to Pratik Gupta of Kotak Institutional Equities.
• MSCI India weightage dropped from 23% in July-August 2024 to around 13%, indicating global investors are underweight.
• IT remains the most under-owned sector due to caution around AI's impact on traditional services models.
• Markets are split on whether AI will cause job losses or boost productivity; Gupta believes extreme job-loss forecasts are overdone.
• Longer-term interest in India remains strong, with sovereign wealth funds eyeing banks, NBFCs, healthcare, telecom, and manufacturing.