India's Market Stalls, But Reforms & FDI Fuel Future Optimism

• Indian stock markets, including Sensex and broader indices, remained largely flat this week, attributed to a delayed US trade deal and India's limited participation in the global AI investing boom.
• Despite market stagnation, Moneycontrol Pro highlights data centers as a key proxy for AI growth in India, identifying 17 actionable stocks for subscribers in related sectors like power and digital infrastructure.
• The weak rupee, breaching 91 against the dollar, deterred FIIs, but analysts foresee a potential recovery supported by strong economic growth and low inflation.
• Significant FDI inflows are expected, with MUFG investing Rs 40,000 crore in Shriram Finance, alongside new policies allowing 100% FDI in insurance and private sector entry into nuclear power.
• Experts like Nomura Research and Kotak Securities' Sanjeev Prasad note these structural reforms and policy shifts, expressing optimism for a strong economic recovery and earnings growth in 2026.

Why It Matters: Despite current market flatness, India's policy reforms and FDI inflows signal strong future economic growth.