Indian stocks outperform Asian peers as AI selloff boosts appeal

Indian equities are heading for their biggest weekly gain in over five years, as a global selloff in AI stocks, falling crude oil prices, and improving earnings prospects boost the market's appeal. The NSE Nifty 50 Index rose Friday, defying a selloff that left every other major Asian market in the red. Investors slashed exposure to AI stocks on fears of tighter regulation following a Democratic sweep in the US midterm elections, and India's relative lack of exposure to the AI trade has turned from a weakness into a blessing. Foreign investors have plowed a net $1.9 billion into local shares this week through Wednesday, with provisional data for Thursday showing a net inflow of $1.6 billion, while short positions on index futures fell by more than 100,000 contracts. The inflows strengthened the rupee, which climbed as much as 0.4 per cent to 94.0675 to the dollar, the highest since April, and broke below its 200-day moving average for the first time since 2025. Still, Indian shares remain on track for their first annual losses in 11 years, and foreign outflows are still at a record for the year, though profit growth at roughly two-thirds of BSE 100 companies that have reported results was the fastest in at least five quarters and beat estimates.