India’s stock market and currency have underperformed comparable emerging markets for more than a year, despite the country maintaining its position as the world’s fastest-growing major economy, according to Barclays Research.

The bank’s analysts are examining whether conditions may be shifting to reverse this trend.

Separately, oil prices have retreated to levels seen before recent geopolitical conflicts, a development that eases pressure on central banks managing inflation. However, volatility in US labour market data continues to complicate the Federal Reserve’s policy decisions.

Rising demand for computer chips driven by artificial intelligence applications is contributing to inflationary pressures, Barclays noted. While AI may prove disinflationary over the longer term by reducing labour market constraints, the immediate effect has been to push semiconductor prices higher.

The bank’s research also considers potential implications for US health insurers should AI-driven automation lead to higher unemployment, which could affect employer-sponsored coverage levels.