Korea's AI crackdown may trigger healthy correction, India could benefit: Rahul Chadha

Rahul Chadha of Shikhara Investment said Korea's AI crackdown could trigger a healthy 5-7% further correction in frothy semiconductor names after an already 10% drop, with India well placed to benefit as FIIs rebalance portfolios. He noted that foreign investors are rotating away from large-cap, index-heavy names into manufacturing exports and consumer internet companies rather than exiting India, supported by softer crude, easing Middle East tensions and RBI reserve build-up. He cautioned that weak IT hiring and urban demand concerns could resurface in six to nine months, while earnings revisions in semiconductors remain strong with supply catching up only by 2028.