Manishi Raychaudhuri emphasizes the importance of political and policy continuity for economic growth and market stability. He says discretionaries, particularly those discretionaries catering to affluent India are relatively safe, not just now but even over the next five to ten years. As income brackets continue to move higher, not only would the consumption package of Indians change, but how they consume that would also change.
Raychaudhuri s insights shed light on the strategic importance of India for foreign investors, the valuation concerns in Indian markets, the future of the manufacturing sector, and the potential growth in the banking sector driven by private banks. He says FIIs are gradually waking up to the fact that while India remains kind of a bi-decadal story, over the next two to three decades, it is going to be a core holding in their portfolio
BNP Paribas Asia Equity strategist, Manishi Raychaudhuri believes that the equity markets may continue trading sideways for the next three quarters due to the aggressive rate hikes of the federal reserve
"In late June, we turned overweight and the big weight in the India silo are financials, and that is predominantly private banks. The second important silo is the consumer universe. We have significant weight in autos, consumer discretionaries and even consumer staples. though we are a bit cautious about valuations there. Apart from that, we have significant weight in TMT, tech, media and telecom, both IT services and telecommunications."
Asian equities witnessed massive foreign outflows in August, as risk sentiment was dented by worries over the longevity of the U.S. Federal Reserve s policy tightening cycle and a slowdown in the.