New Delhi, Aug. 6 -- Indian equities have underperformed several global markets over the past year, but according to Abakkus Investment Managers, the weakness is largely driven by sentiment and valuation rather than the country's economic fundamentals.

The Abakkus study says India's long-term investment story continues to be supported by robust economic growth, healthy foreign exchange reserves, improving domestic demand and policy continuity.

One of the biggest reasons has been the global shift in investor money toward artificial intelligence (AI)-linked markets such as the US, Taiwan and South Korea.

As of 30 June, the Nifty 50 TRI delivered a negative 0.4% one-year return, compared with:

However, the trend looked different over the...