Boosted by one of the world’s fastest growing economies, solid corporate earnings and an unprecedented retail investing boom, the nation’s equity benchmark is also approaching an all-time high.
India’s stock market hit an all-time high valuation of $3.8 trillion this week, a perfectly timed billboard for Modi as the G-20 summit gives him another opportunity to showcase the nation’s potential as a geopolitical juggernaut. With the West looking to curb China’s influence, Modi has rolled out a mix of tariffs and incentives to lure companies to make in India and firms including Apple Inc. and Samsung Electronics Co. are among those expanding production in the nation.
Milan-based Generali Investments is bullish on India for its economic growth and earnings outlook, according to Michele Morganti, the firm’s senior equity strategist. Generali reduced its overweight on China last month as policymakers opt for limited measures to help companies and boost sentiment over an all-out stimulus plan, he said.To be sure, there are several risks on the horizon for India.
Investors have to navigate a general election in April-May that some strategists say has the potential to swing markets. In the longer term, market watchers will also closely scrutinize India’s ability to build fast and adequate infrastructure, lift education standards and create enough jobs for a burgeoning young population amid a rising threat from the increased use of artificial intelligence.Aperture Investors ranks among the holdouts that aren’t boosting exposure.