Indian Data Center Stocks Rally on Global AI Investment

Indian industrial firms specializing in data center infrastructure are experiencing a major stock market rally driven by global demand for AI capacity. This trend, described by traders as the AI capex trade, has seen a Bloomberg index of 28 data-center ecosystem companies add $47 billion in market value, even as the broader NSE Nifty 500 declined in 2026.

Sterlite Technologies Limited led the surge with a stock increase of over 530% this year after securing a $1.1 billion contract from a U.S.-based hyperscaler. Other companies benefiting from this industrial cycle include HFCL Ltd., MTAR Technologies Ltd., and Finolex Cables Ltd.

The growth is fueled by massive commitments from U.S. tech giants. Amazon.com plans to invest $12.7 billion in Indian cloud infrastructure through 2030, while Alphabet Inc. is funding a $15 billion AI infrastructure hub in Visakhapatnam.

Financial analysts from Nomura Holdings Inc. and Angel One report that investor interest has shifted from AI software toward the physical supply chain, often called the picks and shovels of the industry. However, analysts warn that high valuations pose a near-term risk to these gains.