India Stocks Emerge as Global Funds' Top AI Bubble Hedge

• Global fund managers see Indian stocks as a hedge against AI bubble risks due to low correlation with AI trade.
• India's market is favored for its consumption-driven economy, with gains led by banks, consumer firms, and services, offering diversification.
• Strategists from Aberdeen, Principal AMC, Eastspring, HSBC, and Jefferies support this view, citing India's strong domestic growth.
• Despite AI infrastructure investments, India lacks major pure-play AI companies, distinguishing its market from others.
• Local factors like interest rate cuts, 8.2% economic growth, and a potential US trade deal provide a strong backdrop for Indian equities.

Why It Matters: Global funds see Indian stocks as a key hedge against AI bubble risks.