India stands to benefit on a relative basis than its North Asian counterparts as uncertainties around the US tech cycle and global flows intensify says Alexander Redman, Chief Global Equity Strategist at CLSA. He says India could regain traction depending on how the global AI trade evolves. If the current AI premium in US markets cools in an orderly way, flows are likely to retreat from Korea and Taiwan and rotate back into India. However, should the AI bubble burst in a disruptive manner, global risk aversion will rise and buying will pause everywhere though North Asian markets will bear the brunt of selling pressure. In both situations, India performs relatively better, Redman emphasises, because its domestic investor base is deep, sticky and valuation-agnostic. Advertisement

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