Jefferies Calls India a ‘Reverse AI Trade’ Backed by Earnings Growth
Global brokerage Jefferies has described India as a ‘reverse AI trade’, highlighting the country’s equity appeal as being rooted in earnings-driven growth rather than artificial intelligence-led market narratives.
According to the brokerage, while global markets are increasingly focused on AI-centric stocks and valuations, India stands apart with expectations of broad-based earnings expansion across sectors such as financials, industrials, consumption, and infrastructure through FY27.
Jefferies noted that India’s growth story is supported by steady domestic demand, policy continuity, and improving corporate balance sheets. This combination offers investors a differentiated exposure within emerging markets, with fundamentals playing a more central role than thematic momentum.
The brokerage added that India’s relatively lower dependence on high-valuation tech trades may provide resilience during periods of global volatility, keeping the focus firmly on sustainable earnings growth and long-term economic expansion.
