Markets Daily India

Indian Stocks Risk Deeper Underperformance as Tech-Led North Asia Draws Funds

Market’s appeal among Asia money managers has eroded.

Attendees walk past artificial intelligence (AI) signage at the Canton Fair in Guangzhou, China.Photographer: Qilai Shen/Bloomberg

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By Rajesh Mascarenhas

April 17, 2026 at 2:48 AM UTC

This article is for subscribers only.

Good morning...

I’m Rajesh Mascarenhas in Mumbai, wrapping a choppy week for markets.

Early declines in Asian stocks on Friday show investors are unwilling to make big bets ahead of the weekend, even as US President Donald Trump expressed optimism about securing a permanent ceasefire with Iran. To be fair, regional equities have already staged a strong rebound in April, with benchmarks in South Korea, Taiwan and Japan among the biggest gainers. Investors are increasingly showing a preference for these tech-heavy markets as the artificial intelligence theme comes back into focus — highlighting risks that the likes of India, which lack pure-play AI names and are also more vulnerable to the oil shock triggered by the Iran war, may continue to lag. Analysts at Goldman Sachs this week initiated a “relative value trade” by going long on South Korea and Taiwan, and shorting India, Philippines and Thailand.

In today’s newsletter, we look at why: