ETMarkets Fund Manager Talk-High time India gets its due recognition among global investor community: Tamohara Investment

economictimes.indiatimes.com:

FPIs as of now. “It is high time for India to get its due recognition among the global investor community, especially when it has the strongest outlook for growth among major economies, a stable currency, and a strong government and fiscal balance sheet, unlike many other EMs,” said Sheetal Malpani, Chief Investment Officer and Head of Equity at Tamohara Investment Advisors.Edited excerpts from an interview with ETMarkets:Although markets have hit record highs, India has still underperformed its EM and DM peers on a year-to-date (YTD) basis. Do you see scope for a trend reversal?India has covered a lot of underperformances versus the US market in the past 3 months.

Indian markets fell far less than developed markets and other EMs in 2022, so we have to look at 2023 YTD returns in that context. Overall, since the start of the interest rate hike cycle by the Fed, India has been among the best-performing large markets and this should continue in my view.FPIs have been on a buying spree in India. Do you see this sustaining and what are the factors that will drive it?India is the most sought-after market for FPIs as of now given strong earnings visibility and the right policy direction at the center.

Emerging markets (EM) like China which are 30% weight in global EM indices have seen gross underperformance in the last decade despite great economic growth, due to unfavorable regulatory and policy environments. This has catapulted some of those flows towards India and this is a trend we believe will only get stronger going forward.

India gets roughly 1.3% to 1.5% of global equities allocation despite being 3% of the world’s GDP. It is high time for India to get its due recognition among the global investor community, especially