Global fund managers looking to diversify their investments beyond AI are looking at Indian markets as a potential hedge, according to a Bloomberg report, citing multiple asset managers.

Risks with regards to AI plays, their valuations and subsequent unwinding are beginning to roil Wall Street over the last two sessions, led first by results of Oracle, and then Broadcom, which spilt over to AI leaders such as Nvidia and AMD as well.

India's benchmark Nifty 50 index has returned 10% so far this year, making a new record high in the process, but the broader markets have underperformed. The Nifty Midcap 100 is up only 5.5%, while the Smallcap index is down 7.3% so far, with a handful of trading sessions left for the year.

However, Aberdeen Group Plc. expects Indian equities to rebound in 2

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