Allspring Global’s Prashant Paroda told CNBC‑TV18 that Indian equities could see a 2% uptick in foreign allocation this quarter, a sharp contrast to the 12‑point slide in U.S. AI names.
The decline in hyperscaler earnings has forced investors to look beyond the AI hype. Paroda noted that U.S. tech stocks have trailed the broader market by 3% since the start of the year, while the NIFTY 50 has held its ground, rising 4% YTD.
Taxation parity is the lever that could pull more capital into India. Paroda urged regulators to align corporate tax rates with China and Hong Kong, highlighting that a 2% higher effective tax rate is currently a deterrent for foreign institutions.
Looking ahead, Paroda said that India’s macro backdrop remains resilient—high crude prices notwithstanding—and that a stable regulatory environment could unlock a 5‑10% upside in long‑term valuations. The firm will reassess its exposure when the next earnings cycle unfolds in Q1 2025.