Indian Stocks Gain Haven Appeal as Investors Flee AI Trade Indian stocks were a lone bright spot in Asia on Friday as the rest of the region slumped on renewed concerns over artificial intelligence. By Alex Gabriel Simon The NSE Nifty 50 Index climbed as much as 0.5%, touching its highest level in three months, with software exporters and automakers providing the biggest boost. No other major Asia market was trading higher as of 10 a.m. in Mumbai.

Indian stocks are emerging as a relative haven as investors pull away from US and North Asia shares tied to the artificial intelligence buildout. India is increasingly being seen as an ‘anti-AI’ trade, supported by its large domestic market, improving earnings outlook and relatively attractive valuations while the once-high-flying trade unravels.

That shift is drawing investors back to India’s $5.1 trillion stock market after rich valuations and record foreign outflows had soured sentiment. The Nifty is on course for its best week since 2021, and while technical indicators signal the gauge is overbought, the plunge in oil prices could provide another tailwind by boosting the appeal of Indian assets. The rupee rose 0.4% versus the dollar on Friday to the strongest level since early May.

Foreign flows are already turning more supportive. Global funds have bought more than $4 billion of local shares over 11 sessions through Wednesday, while provisional data for Thursday showed a net inflow of $1.6 billion.

They’ve also cut bearish wagers on index futures on the National Stock Exchange of India by more than 130,000 contracts over the past five weeks, helping Indian equities outperform regional peers, according to data compiled by Bloomberg.

Since Oct. 1, the Nifty has risen close to 9%, even as the MSCI Asia Pacific Index slid by 11%.