Indian equities emerged among the best-performing markets globally in October, outperforming the broader Asia-Pacific region excluding Japan (MXAPJ) by 7 percentage points, according to a Goldman Sachs Research report reported by ANI on Monday, November 2.

Source: ANI via GTC News

Goldman Sachs said India benefited from a global market rotation away from AI-sensitive North Asian markets. "India saw a sharp move up in October, outperforming MXAPJ by 7pp, and becoming one of the best performing markets globally," the report noted, reversing India's underperformance during the first nine months of 2026.

Source: The Hindu BusinessLine

The shift came after the NIFTY had recorded a 10 per cent peak-to-trough decline in the third quarter, before rebounding 3 per cent from its early-October lows. In the week ended October 30, the NIFTY rose 2 per cent, outperforming the regional MXAPJ index, which gained 1 per cent.

Rotation from AI enablers to IT services

A similar rotation played out inside the domestic market. AI enabler stocks underperformed the NIFTY by 6 percentage points in October, after outperforming it by 76 percentage points between January and September. In contrast, IT services led the market in October, outperforming the benchmark by 14 percentage points.

The report also said corporate earnings remained healthy, with around 89 MSCI India companies, representing 58 per cent of the index's market capitalisation, having reported results for the third quarter of calendar year 2026. Foreign institutional investors turned net buyers with USD 1.2 billion in the week ended October 30, according to the NewKerala summary of the report.

Source: NewKerala

On valuation, Goldman Sachs said India's forward price-to-earnings stood at 18.4 times, while the market traded at a 92 per cent premium to the broader Asia-Pacific region, close to its historical highs. The coming weeks will bring further earnings announcements, with several large companies scheduled to report results in early November.