India is definitely well-placed among money-drawing markets like the US, China and Europe, according to Samir Arora, Founder of Helios Capital.
With Indian equities outperforming until last year, underperformance in the last couple of months would hardly mean this trend will continue, Arora said at a Crystal Gazing Summit and Awards 2023, organised by PMS AIF WORLD.
PMS AIF WORLD, is a new-age investment services online platform focused in the space of alternative investments offering analytics and strong content backed quality investment solutions to the HNIs, UHNIs & NRIs.
“It is too short a period to be negative on India,” he added.
The market veteran explained that over time Indian equities have performed well, which he believes will continue to be the case in the coming years. Besides, China re-opening does not pose a threat as much, he added.
Arora had even told ETNow that FIIs are most welcome to put new money into China or do whatever. But to think that after a 40-50 percent move in the index in China, if somebody is selling India to buy China, it is laughable.
Christopher Wood, the Global Head of Equity Strategy at Jefferies, also remains positive on Indian equities.
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Despite the positive stance, Wood believes that high valuation and selling by Foreign Portfolio Investors (FPIs) have been the key reasons behind the underperformance of Indian equities at the start of this year.
Though the Indian domestic demand story remains rock solid, the worry for the stock market remains high valuations, Wood has written in his Greed & Fear newsletter.
Walking down memory lane, Arora said the 1990s and early 2000s were great times. In the 1990s, he beat the market by generating 30 percent per annum returns for eight years and in the last twenty years, the returns have diminished to six-seven percent per annum, he remembered.
