The artificial intelligence (AI) boom is significantly influencing global stock markets, particularly in the US and China, while the Indian market is exhibiting a more cautious stance.

In the United States, the stock market is showing signs of fatigue as investors await the Federal Reserve's decisions regarding potential rate cuts. Despite this, AI continues to be a major driver of growth. Geosphere Capital's Arvind Sanger advises caution in the face of market volatility.

China is also experiencing AI-driven growth in its stock market. This mirrors the US, where companies involved in AI development and application are seeing increased investor interest.

In contrast to the US and China, the Indian market is in a "holding pattern". While India is making strides in the AI sector, as evidenced by the India AI Mission, its impact on the stock market is not as pronounced. The Indian government is actively promoting AI development through incentive schemes and selection of companies to build foundational AI models.

Several factors contribute to India's cautious approach. Global challenges and uncertainties are a concern. However, buying opportunities exist in India amid this global uncertainty. Clarity on trade policies is crucial for the Indian market.

Despite the current holding pattern, India's long-term prospects in the AI sector remain positive. The government's support for AI development, coupled with a growing pool of AI talent, suggests that India is well-positioned to capitalize on the AI revolution. Investment firms are recognizing the potential in India's AI landscape.

Overall, the AI boom is reshaping the global stock market landscape. While the US and China are experiencing significant AI-driven growth, India is taking a more measured approach. However, with continued government support and a growing AI ecosystem, India is poised to emerge as a key player in the global AI race.