China's AI Boom Fuels Market Rally, Indian Stocks Slump

In a dramatic shift, Chinese stocks are surging while Indian markets face a brutal slump. The MSCI China Index has gained nearly 18% this year, propelled by DeepSeek's AI breakthroughs, while the MSCI India index has lost over 7%4. India's Nifty 50 has fallen 15% from its September peak, marking its longest losing streak since 19963. Foreign investors have sold $25 billion worth of Indian equities since September, with $4.1 billion exiting in February alone. Meanwhile, China's CSI 300 index has risen about 25% since announcing stimulus measures. This rotation reflects growing investor confidence in China's tech sector and concerns over India's economic challenges.
Sources: CNBC, Business Today, Equity Master