Many investors are scrambling for opportunities to AI-proof their portfolios in the event the AI boom goes bust. J.P. Morgan is <a href="https://www.jpmorgan.com/insights/global-research/markets/india-stock-market-outlook?source=cib*em*icnl*Sept232026*1103333*intro&mkt*tok=NzI2LUtaWS00MDIAAAGkbR4PRS8geOWPyRQ3n8rNsgtXjXBgT0HONOO6S*P1*fFz6D0TQH01-xZV*skYtK6TvwUobVopfa*R08nbuxAt03oDbqnnyVXwzrtP2ZXdVEKB” rel=”nofollow noopener” target=”_blank”>declaring one of the largest stock markets in the world as ripe for investment.
India’s stock market is emerging as an attractive destination for investors to deploy capital, according to the investment bank. It makes up about 12% of the MSCI Emerging Markets Index, which tracks large and mid-cap stocks in two dozen emerging economies. J.P. Morgan also cited a fiscal and monetary policy in place that aligns with India’s steady economic growth.
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AI has driven Wall Street’s colossal growth, but fears of financial chaos breaking out have lingered if AI spending slows down or dries up. All told, India is a prime destination to invest in a financial environment that hasn’t been taken over by the AI boom.
“The country’s appeal to global investors, however, is increasingly of a different kind,” J.P. Morgan said in a report. “Rather than competing on AI earnings power, India is emerging as a safe haven for those looking to diversify away from, or trim, crowded AI exposures.”
‘India increasingly becomes the default choice’
It’s getting harder to assemble a portfolio that won’t be affected by the AI boom in some form. The Brookings Institution published an analysis on Sept. 23 estimating that the price tag of the AI buildout in the U.S. over the next seven years will total $10 trillion.
One analyst described India as the top choice for insulating a portfolio against AI’s unpredictable future.
“When investors go looking for non-AI exposure, India increasingly becomes the default choice,” Rajiv Batra, head of Asia and co-head of Global Emerging Markets Equity Strategy at J.P. Morgan, said in the report.
The Indian stock market has proved to be resilient as it overcame a recent chapter of lackluster growth. J.P. Morgan noted that small- and mid-cap companies in India spearheaded that expansion with earnings growth of at least 25% for six to seven consecutive quarters. Once favorable business conditions set in, large-cap companies followed suit and posted double-digit earnings growth over two quarters.
