India’s government has accelerated sales of state‑owned stakes as the country reels from higher oil costs triggered by the Middle East war. The move aims to shore up fiscal buffers while the economy wrestles with slower equity market activity.

The fiscal squeeze emerges after the U.S. and Iran reached a tentative 60‑day ceasefire extension, easing oil prices but not enough to lift India’s lagging stocks. Investors note that AI‑related equities have outperformed peers, reshaping capital flows.

Muddy Waters Capital’s founder, Carson Block, highlighted AI as a driver for rethinking India long‑short strategies, underscoring the sector’s growing weight in portfolio decisions.

State‑owned companies such as Asian Paints and InterGlobe Aviation will report earnings this week, marking the end of a volatile quarter and a test for the government’s asset‑sale strategy.