Archive · 21 Aug 2026
Why India Is Being Seen as an AI Hedge
A DSP report says India may protect investors if artificial-intelligence investments become less popular.
This is because India’s markets have performed much worse than other markets recently.
Jay Kothari said India underperformed emerging markets by almost 40% over the last year.
Over two years, he said the gap reached almost 70%.
Kothari said this level of underperformance had never been seen before.
Because India has moved differently from many other markets, it could act like a hedge.
A hedge is something that may help balance losses elsewhere.
The report calls this an anti-AI or AI-hedge trade.
A latest DSP report describes India as an anti-AI trade.
DSP’s Jay Kothari said India may act as an AI hedge.
India has significantly underperformed emerging and global markets over the past two years.
India’s one-year underperformance versus emerging markets was described as nearly 40%.
Its cumulative underperformance over two years was described as nearly 70%, an unprecedented level according to Kothari.
- Who
- DSP and its representative Jay Kothari.
- What
- A DSP report characterized India as an anti-AI trade and said its market could act as an AI hedge.
- When
- The report discusses performance over the last one and two years.
- Where
- India, in comparison with emerging and world markets.
- Why
- India has significantly underperformed emerging markets and global markets, potentially making it move differently from AI-focused investments.
- Report
- A latest DSP report described India as an anti-AI trade.
- Spokesperson
- Jay Kothari of DSP.
- One-year performance gap
- Almost 40% underperformance compared with emerging markets.
- Two-year performance gap
- Almost 70% cumulative underperformance.
- Comparison
- India underperformed emerging markets and world markets.
- Investment interpretation
- India may act as an AI hedge because of its recent relative underperformance.