The Indian stock market continued its bullish run, with both frontline indices surging nearly 1% in Wednesday's trade, hitting an 8-month high and extending last week's phenomenal rally.
The Nifty 50 has now recovered around 13.5% from its war-induced lows, while its year-to-date losses have narrowed to just 3.35% after previously slipping into double-digit declines.
Although the Indian market's performance was relatively subdued compared with its Asian peers, most of which were trading with stronger gains, domestic equities continued to build on their recent recovery, supported by improving investor confidence and renewed buying interest.
The recovery has largely been supported by the return of overseas investors, as India becomes an increasingly attractive investment destination following the global AI-led sell-off.
Additionally, the decline in crude oil prices has helped ease inflationary pressures and improved the outlook for India's macroeconomic fundamentals. FPIs have pumped ₹53,739 crore into domestic stocks in November so far, according to NSDL data.
India’s relatively limited exposure to the AI trade had made its stocks among Asia’s worst performers. However, as the once high-flying trade begins to unravel,…