The pullback by Indian markets, which started even before April, has made it one of the important destinations for global investors to diversify their portfolio, according to Manpreet Gill, chief investment officer of Africa, Middle East and Europe at Standard Chartered.
“When it comes to Indian markets, we’d rather be a buyer than a seller, both from a domestic investor’s perspective and a global investor’s perspective,” he told NDTV Profit in a conversation on Thursday. “We’re big fans of diversified portfolios.”
“The pullback cycle started well before April, and that’s left Indian markets in arguably a much better position from a valuation standpoint in terms of pricing,” Gill said.
Standard Chartered’s Manpreet Gill. (Photo Source: Official Website)
The top executive explained that global investors concentrated hugely on the US equities in recent years. However, the geopolitical volatility created by President Donald Trump’s tariffs has underlined the need to diversify to Europe and Asian markets, such as India.
“It’s not about ignoring the risks. I think we still need to closely watch them. But on balance, we just think we’d rather be buyers than sellers,” he said.
The US dollar’s strength since 2021–22 has been a significant driver of capital flows into emerging markets, including India. A strong dollar typically acts as a headwind for foreign investment in these markets, according to Gill.
He underlined recent dollar weakness against major Asian currencies as a potential tailwind for emerging markets like India.
On the bond market, he expressed optimism, citing opportunities for Indian investors despite less favourable tax treatments. He argued that bonds, alongside gold, can provide stability to portfolios. This is particularly relevant in an environment of slower growth and heightened risks, he said.
“An allocation to bond and gold allows you to take a little bit more risk without having to increase the volatility. It’s a good time to hold some bonds, particularly when the Reserve Bank of India is biased towards cutting rates. That’s always a tailwind,” he said.
On the recently signed India-UK Free Trade Agreement, Gill said: “What is giving these trade deals more impetus is the environment we are in, given what’s changed from a US policy perspective.”
Considering the “doom and gloom” surrounding the US tariffs, the more such deals can offset the impact of US tariffs, the better it will be, he said.
On being asked about the sectoral impact of the India-UK FTA, he highlighted consumer discretionary, financials and healthcare as the three main areas of focus.
Commenting on the reasons behind his confidence in the consumption boost, he highlighted “budgetary support on the fiscal side and increasingly, more room to provide support from the monetary side as well”.
He also noted that Standard Chartered has made a shift, closing its preference for infotech in Indian equities and replacing it with healthcare. Gill called it a “more defensive approach” to reduce exposure to trade-sensitive and growth-sensitive sectors.
. Read more on Markets by NDTV Profit.Geopolitical volatility created by President Donald Trump’s tariffs has underlined the need to diversify to Europe and Asian markets, such as India, he says. Read MoreMarkets, Notifications
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