India tops global markets in October as investors shift from AI stocks: Goldman Sachs

Indian stocks were among the world's best-performing markets in October, driven by investors rotating away from AI-sensitive technology stocks, according to a Goldman Sachs report. The Nifty index outperformed the broader Asia-Pacific region by 7 percentage points, reversing its earlier underperformance. Within India, IT services companies led gains, outperforming the index by 14 percentage points, while AI-linked stocks lagged by 6 percentage points after beating the benchmark by 76 points earlier in 2026. Foreign investors bought $1.2 billion in Indian equities during the week ended October 30, though net outflows for the year remain at $31 billion. The rally followed a difficult third quarter when the Nifty fell 10 percent from peak to trough, recovering 3 percent in early October. Earnings from companies representing 58 percent of the MSCI India index showed profits tracking 15 percent higher year-over-year, but the market's forward price-to-earnings ratio of 18.4 times and a 92 percent valuation premium over regional peers have raised concerns ahead of major corporate results in early November.