Indian equities look more attractive as AI spending concerns ease, says Uday Kotak
BusinessLine 23 min ago·5 Nov 2026, 9:22 am
Renowned investor Uday Kotak has suggested that Indian equities are becoming more appealing to investors. His reasoning is that the intense global focus on Artificial Intelligence (AI) spending is cooling down. This shift is expected to help stabilise Foreign Portfolio Investor (FPI) flows into the country, which have been volatile recently.
This development matters because FPIs are a key source of capital for the Indian market. Kotak also anticipates that the Reserve Bank of India might continue to raise interest rates by another 50 to 75 basis points. Higher rates can impact the cost of borrowing for companies and the returns on fixed deposits, which are important factors for retail investors to consider.
Investors should keep a close watch on the upcoming FPI data and the central bank's policy decisions. Monitoring these indicators will help in understanding the overall market sentiment and liquidity conditions in the coming months.
Excerpt from BusinessLine
Expects FPI flows to stabilise as AI capex frenzy eases; sees another 50-75 bps rate hike Indian equities are no longer as expensive as they were a year ago relative to other markets, making them more appealing as concerns over excessive AI-related spending weigh on global investors, veteran banker Uday Kotak said.…Read the original at BusinessLine
Key takeaways
- Category: Economy.
- AI reads the tone as positive (potentially bullish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
This is a high-impact development and could move the stock. The tone is positive — historically associated with upward pressure, though not predictive. Use the price and stock snapshot to gauge how the market is responding.
