Taiwan, Korea catch up with India as AI trade drives earnings boom

Taiwan, Korea catch up with India as AI trade drives earnings boom


India’s valuation premium over regional peers is narrowing as AI-driven rallies in Taiwan and South Korea attract foreign investors, while muted earnings growth and sustained FII outflows continue to weigh on domestic equities.

By Yoosef K  May 14, 2026, 9:59:40 PM IST (Published)
Taiwan, Korea catch up with India as AI trade drives earnings boom

India — once regarded as the most expensive equity market in the region — is quietly losing its valuation premium over other emerging markets. One key reason is the absence of a strong artificial intelligence (AI) investment theme, which has attracted foreign investors towards markets such as Taiwan and South Korea.

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