India today is far less fragile than before: Nippon India MF’s Sailesh Raj Bhan

Subscribe to enjoy similar stories.Apart from some currency depreciation, the Indian economy has held up reasonably well, and growth numbers remain stable, said Sailesh Raj Bhan, president and chief investment officer (CIO) - Equity Investments, Nippon India Mutual Fund.“India today is also far less fragile than before,” he added.The broader belief is that elevated crude prices are not a permanent situation, as they would hurt the global economy as well. Once conditions normalize, flows are likely to return to India, said Bhan.Among the sectors, he likes all private-sector banks, consumer plays, and general insurance plays.Edited excerpts:Things will improve in India as investors begin to see opportunities emerge.

Traditional businesses are also doing well as we come off a weak earnings cycle, while currency movements could provide a meaningful boost—earnings could expand by around 10% if current levels sustain for 12 months.If crude prices ease over the next 6-12 months, the outlook could improve further; otherwise, investors may have to wait another year. For now, this remains an accumulation market.

Investors should continue SIPs and, if comfortable, even increase allocations during periods of weakness to accumulate more over the long term.Every market comes with its own operating challenges, and these issues in India have existed for years. Investors always weigh the trade-offs—despite concerns around disclosures or liquidity, the key question is whether India still offers the right opportunity at the right price.These concerns are amplified when other markets, such as China or Korea, offer higher returns.