New Delhi, May 9 -- India's underperformance against major global markets has been driven largely by the global artificial intelligence (AI) rally and not necessarily by weakness in the broader domestic economy, according to Motilal Oswal Financial Services' latest strategy report, The Eagle Eye - May 2026.

According to the report, markets such as South Korea, Taiwan and the United States have significantly outperformed due to their strong exposure to the global AI trade, particularly in AI hardware and semiconductor-linked businesses.

"Since CY24, India's headline underperformance has been largely driven by global AI trade, where markets like Korea, Taiwan, and the US have significantly outperformed," the report said.

The brokerage sa...