India's AI Enablers Rally 60% Despite Nifty Decline, Goldman Says
Goldman Sachs identified a basket of 42 Indian AI-enabler stocks that surged 60% year-to-date, even as the broader Nifty index declined 12%, according to recent analysis. The outperformance was driven by power, data centre, and semiconductor companies benefiting from rising corporate investment in AI infrastructure and accelerating earnings growth.
India's equity market has experienced a challenging year overall, with the Nifty index declining 12% in 2026, according to market reports. However, Goldman Sachs' curated basket of 42 AI-enabler stocks has significantly outperformed, registering a 60% gain during the same period, the announcement indicated. This divergence highlights a concentrated narrative around artificial intelligence infrastructure development in India's equity markets.
The strong performance of AI-related companies has been underpinned by several factors. Power utilities, data centre operators, and semiconductor firms — all critical components of AI infrastructure — have emerged as primary beneficiaries. The announcement noted that these companies have been supported by solid earnings growth, rising capital expenditure investments, and heightened corporate focus on deploying AI infrastructure.
For traders and investors, this dynamic underscores the divergence between headline index performance and thematic outperformance in India's markets. Infrastructure-adjacent sectors — particularly those supplying the computational backbone for AI deployment — have attracted significant capital flows as corporations accelerate digital transformation initiatives. This pattern reflects broader global trends where AI-enabler stocks have outpaced traditional indices, driven by structural demand for power, cooling, semiconductors, and data centre capacity. The continued focus on capex expansion and earnings acceleration in these subsectors suggests the thematic trade may have runway, though concentration risks merit consideration for investors evaluating India's equity opportunity set.
Source: Markets-Economic Times
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