Indian Large-Cap Stocks Surge as Investors Rotate From AI
Indian equities outperformed global peers in October as investors shifted capital from AI-sensitive markets toward large-cap stocks and IT services.
Indian large-cap stocks gained significant investor interest in October 2026, leading the global IPO league table and outperforming the Asia-Pacific region excluding Japan by 7 percentage points. This growth followed a 10 percent peak-to-trough decline in the third quarter and was driven by a global rotation away from AI-sensitive North Asian markets.
Goldman Sachs Research noted that this trend mirrored domestic shifts, where investors moved capital from AI-enabler stocks into IT services, which outperformed the benchmark NIFTY by 14 percentage points. Foreign institutional investors contributed 1.2 billion USD in net buying during the week ending October 30, while domestic institutional investors added 400 million USD. Corporate health remained stable, with combined profits for 58 percent of MSCI India companies tracking 15 percent higher year-on-year.
Specific corporate gains were led by Reliance Industries, which beat analyst estimates on refining margins, and Jio Platforms, which reported a 14 percent profit increase. Simultaneously, the Government of India reported a 23 percent year-over-year increase in October GST collections, reaching 2.31 trillion rupees, the second-highest level on record.
