India’s NIFTY 50 index saw a slight dip at the start of December but has rebounded with a 0.57% climb on Friday. Overall, the index has gained 0.18% over the past five sessions, indicating a positive shift in sentiment towards the market. Economic outlook remains strong with a 10.19% year-to-date gain.

Global fund houses are eyeing India’s $3.3 trillion potential, driven by expanding investor base and multinationals listing units in the country. Retail investors are fueling market inflows, creating opportunities for asset managers. India’s mutual fund industry is projected to grow to $3.3 trillion by 2035, offering significant room for growth.

Big tech giants like Microsoft and Amazon are investing billions in India for cloud and AI infrastructure. Microsoft plans to invest $17.5 billion over four years, while Amazon pledged $35 billion. India’s IT expertise, young investor base, and data center potential make it an attractive market for tech investments.

Jefferies predicts a stronger 2026 for India equities, with the NIFTY 50 expected to reach 28,300 by year-end, an 8.65% upside from current levels. Domestic flows will be key in supporting India’s economy. Investors can consider India ETFs like INDA, EPI, FLIN, INDY, and NFTY for long-term investment opportunities.

India presents a promising data center market with global cloud providers, AI innovators, and digitalization converging. Short-term challenges like foreign outflows and trade deals exist, but long-term economic fundamentals remain strong. Consider India ETFs for exposure to the country’s growth story and potential investment opportunities.

Read more at Nasdaq: Here’s Why 2026 Could Be a Breakout Year for India ETFs