Record Indian stock rally must price risk from robots, says UBS Group

Robots will eat into any economic boost India receives from its young population and markets aren’t pricing in these risks, says UBS Group AG. Stocks have been hitting fresh highs and while UBS predicts growth and jobs will increase over the next five years, it cautions that immediate risks are to the downside. A global shift toward automation could be a significant negative, leaving many underemployed or without a job.

“This could be a grey-sky scenario for India in terms of gross domestic product and earnings growth, and could also lead to major social issues,” analysts including Gautam Chhaochharia wrote in