Founder & CIO Sandeep Tandon has become increasingly constructive on India over the past few months, arguing that weakening prospects in several developed markets could redirect foreign investment towards Indian equities.
He said, “I think money will come to India, and that trend has already begin. It’s a good time for India, irrespective of global market, my personal assessment is that global markets are still going to be very turmoil. I still believe though US is at lifetime high, but if I have to look at purely from a vulnerability perspective, is very vulnerable right now. We have seen a move in USD-JPY signed towards appreciation, and that may not be good news for the global equities.”
According to him, while developed markets remain vulnerable, any sharp correction overseas could ultimately benefit India through higher foreign institutional inflows.
Large caps may regain leadership
After a prolonged period of outperformance by mid- and smallcap stocks, Tandon believes market leadership could temporarily shift back towards largecap companies.
He expects investors to favour larger stocks if global uncertainty increases, especially as they offer better liquidity and relatively attractive valuations. Foreign investors returning to India are also likely to concentrate their buying in largecap names.
Positive on IT after long bearish phase
Quant MF has also increased its exposure to the information technology sector after remaining underweight for several quarters.
Tandon said the fund house started building positions when the Nifty IT index was trading near lower levels and now holds meaningful exposure across several schemes. While acknowledging that AI is changing the technology landscape, he believes Indian IT companies still have significant opportunities as enterprises adopt and implement AI solutions.
“I am not going to be negative from here – I will look for opportunity to participate rather than…”
He added that Indian companies have shown the ability to adapt quickly to technological changes, making the sector attractive despite ongoing debates around AI-led disruption.
Favourable view on PSU stocks and NBFCs
Tandon also reiterated his positive stance on PSU companies, saying government stake sales improve market depth, liquidity and institutional participation over time. He believes many PSU stocks continue to offer attractive valuations without the governance concerns often associated with some private companies.
Within financials, he expects non-banking financial companies (NBFCs) to continue outperforming both private and public sector banks over the medium term. He believes recent regulatory concerns are unlikely to alter the sector’s longer-term growth trajectory.
For full interview, watch accompanying video
