New Delhi [India], February 9 (ANI): Indian fairness markets are comparatively protected against the dangers of a possible synthetic intelligence (AI) bubble, owing to their restricted publicity to pure-play AI firms and a extra balanced market construction, in line with a report by Motilal Oswal Private Wealth.
The report information highlighted that whereas international markets, particularly the US, have seen sharp boom-bust cycles pushed by technology-heavy indices, Indian markets have traditionally proven higher resilience throughout such phases.
One of the important thing comparisons within the report is between the market capitalisation of the worldwide ‘MAG7’ shares and the GDP of main economies.
The information confirmed that the market capitalisation of the MAG7 stands at USD 19.4 trillion, similar to China’s GDP at USD 19.4 trillion, and considerably greater than the GDP of nations like Germany (USD 5.3 trillion), Japan (USD 4.3 trillion), India (USD 4 trillion), and the UK (USD 3.7 trillion).
This focus highlighted the size of valuation danger in international tech-heavy markets.
The report additionally in contrast the efficiency of the Nasdaq 100 and the Nifty 50 throughout the dot-com bubble interval.
Between 1996 and 2000, the Nasdaq 100 surged 643 per cent, whereas the Nifty 50 rose by a comparatively modest 80 per cent. When the bubble burst between 2000 and 2003, the Nasdaq 100 fell sharply by 75 per cent, whereas the Nifty 50 declined by 39 per cent.
During the restoration section from 2003 to 2007, the Nasdaq 100 gained 88 per cent, whereas the Nifty 50 delivered a a lot stronger restoration of 557 per cent.
So, as per the report information, this historic development means that India remained comparatively protected against the acute boom-burst cycle seen throughout the dot-com interval.
Looking at newer efficiency, the report famous that from January 2016 until January 2026, the Nasdaq 100 delivered returns of 494 per cent, considerably greater than the Nifty 50’s 246 per cent. However, valuation enlargement tells a special story.
During the identical interval, the PE re-rating for the Nasdaq 100 stood at 88 per cent, in comparison with simply 28 per cent for the Nifty 50, indicating decrease valuation froth in Indian equities.
The report concludes that India’s comparatively restricted publicity to pure-play AI firms gives a layer of safety within the occasion of an AI-driven bubble burst.
With much less dependence on a slender set of extremely valued expertise shares, Indian markets are seen as extra balanced and fewer susceptible to sharp corrections pushed by extreme optimism round AI. (ANI)