India's AI Enablers Surpass Expectations with 60% Surge
India's stock market has been considered an 'anti-AI' trade, lagging behind global markets since the AI boom in 2025. However, a report by Goldman Sachs challenges this notion, highlighting that beyond the benchmark indices, there are at least 42 AI enablers that have surged 60% in 2026 so far.
This group of companies, which includes names like Adani Green Energy and Tata Power, has been driven by earnings growth rather than multiple expansion. Since 2025, AI Enablers have returned +53%, with +65pp coming from earnings growth and -12pp from valuation compression.
The strength in AI enablers is broad-based, with all three layers of power (data centres, semiconductors, and power generation) rallying 40-80% year-to-date. Nine out of nine sub-layers have outperformed MSCI India, with six up more than 20% YTD.
The report notes that while Indian IT forms a big chunk of Nifty, it is hurt by AI advancements as they challenge its traditional revenue model.