Cautious Foreign Investors Are Getting Their India Stock Calls Right

Good morning...

I’m Alex Gabriel Simon, an equities reporter in Mumbai, and here’s what I have been picking up in the market.

Indian software stocks will in focus when trading begins today, after fresh concerns about the impact of artificial intelligence sparked yet another selloff on Wall Street overnight. That, along with confusion over US trade policy — President Donald Trump is looking at alternative ways to impose new tariffs — makes for a cautious backdrop. With the monthly equity derivatives expiry around the corner, Indian traders are also bracing for higher volatility. Bulls are hoping that foreign investors, who have emerged as relatively better stock pickers over the past year, will support the market by adding to this month’s purchases of local shares.

In today’s newsletter, we write about: