India Lags AI Boom, FIIs Net Short on Markets: Mihir Vora

• Mihir Vora, CIO at Trust Mutual Fund, states FIIs are heavily net short on Indian markets due to India lagging the global AI investment cycle.
• India missed out on the AI hardware and software theme that benefited countries like Korea, Taiwan, Japan, and China in 2025.
• Currency weakness and lack of clear sectoral growth triggers have dampened investor confidence, while a potential trade deal could boost sentiment.
• Vora suggests large-cap IT stocks face single-digit growth and are underweight for a 3-5 year view, preferring stock-specific mid-cap and small-cap IT companies.
• Commodities like aluminium and copper are seeing demand fueled by AI, EV, and renewables, with Trust Mutual Fund tactically invested in zinc, copper, and aluminium names.

Why It Matters: India's market is underperforming due to a lack of AI theme and FII short positions, but a trade deal could help.