π India back in focus as AI trade gets crowded
India is resurging as a portfolio diversifier while global money floods into AI-related markets. Emerging market funds attracted $4 billion, the most in six months, as the EM index bounced back from its 200-day moving average. India-focused long-only funds have seen slowing outflows since July 2025, outperforming peers by about 10% since mid-June. HSBC suggests India acts as an anti-AI diversifier, potentially attracting $25 billion if underweight positions normalize. This shift indicates immediate selling pressure is easing, even though a full foreign return is still pending.