Archive · 7 Aug 2026
Indian equity markets present long-term opportunity despite near-term lag
Imagine a report card for the stock markets of different countries.
Lately, India's market has not grown as fast as the markets in South Korea, Taiwan, Japan, and the United States.
A money-management company called Abakkus Investment Managers wrote a report about this.
The report says that is okay because India's economy is still strong and healthy, with good growth and people buying more things.
Many investors are currently excited about artificial intelligence, or AI, and are putting their money in places like the United States, Taiwan, and South Korea.
The report thinks India will benefit when that AI trend shifts, and that investors who made profits in South Korea may bring their money to India.
It also notes that India's market is spread across many different businesses, which makes it less risky.
So even though India's stocks have been slower lately, the report believes India is a good place to invest for the long run.
A report by Abakkus Investment Managers said Indian equities have lagged global peers in the near term but could emerge as a compelling long-term investment case as foreign flows rotate back.
The report forecast that India is expected to gain from an AI trade reversal in the medium to long term, with foreign institutional investors who booked profits in South Korea possibly redeploying capital into India over the next six to 12 months.
India's underperformance was described as largely sentiment- and valuation-driven rather than a reflection of macroeconomic fundamentals.
Over one year to June 30, 2026, Nifty 50 TRI returned -0.4%, versus South Korea's Kospi at 103.2%, Taiwan's TAIEX at 83.2%, Japan's Nikkei at 56.7% and the US Nasdaq at 20.1%.
In the past month, India's Nifty 50 TRI gained 2.4%, while South Korea's Kospi fell 22.2%.
- Who
- Abakkus Investment Managers, which published the report; Aman Chowhan, Head of Equities - Alternates at Abakkus Investment Managers Private Limited, is quoted.
- What
- A report stating Indian equities present a compelling long-term opportunity despite near-term underperformance, with expected gains from an AI trade reversal.
- When
- The report was released on Thursday; performance data runs through June 30, 2026.
- Where
- India, with comparisons to South Korea, Taiwan, Japan, and the United States.
- Why
- Strong economic fundamentals, an expected rotation of foreign capital back into India, and structural strengths supporting rupee recovery.
- Report publisher
- Abakkus Investment Managers
- Nifty 50 TRI 1-year return (to June 30, 2026)
- -0.4%
- South Korea Kospi 1-year return
- +103.2%
- Taiwan TAIEX 1-year return
- +83.2%
- Japan Nikkei 1-year return
- +56.7%
- US Nasdaq 1-year return
- +20.1%
- Nifty 50 TRI 1-month return
- +2.4%
- Kospi 1-month return
- -22.2%
