New Delhi, Dec. 18 -- The US and other Asian markets, such as China, Hong Kong, and South Korea, have witnessed a sharp rally in technology stocks driven by the artificial intelligence (AI) boom. This has, in turn, driven the markets significantly higher this year, while the Indian stock market has lagged amid a lack of such AI stocks.

Christopher Wood of Jefferies has called Indian IT stocks a "reverse AI trade".

Analysts, meanwhile, have predicted that signs of an AI bubble, which has weakened the lure for these stocks in the other global markets, will likely facilitate capital flows into emerging markets like India in 2026.

Despite its shortcomings, Indian IT companies have started making investments in AI, with TCS, in its recent i...