New Delhi, Oct. 3 -- India could emerge as a beneficiary if the global frenzy over artificial intelligence stocks cools, RBI Governor Sanjay Malhotra said. A sharp correction in AI-linked valuations across developed markets could unsettle investors and trigger volatility, but it may also encourage international capital to look for opportunities in markets such as India.

RBI Governor highlighted that while Indian share markets have adjusted downward from recent highs, the pullback has remained controlled and smooth.

"The AI investment cycle has been a major support for global financial markets, with strong earnings driving significant gains in AI-related equity valuations. However, as the investment cycle matures, any slowdown in AI inve...