On valuations, Jain said, “On an absolute basis, India is still expensive. But compared to other markets, India’s relative premium is not that stark anymore.”
Highlighting sectors, he noted, “We focus on areas where headline news and tailwinds remain supportive. Rate-sensitive sectors could benefit from potential rate cuts. Consumption is another area likely to do well, and we also have an out-of-consensus overweight on IT, as US-India relations improve.”
On the global AI rally and its impact, Jain cautioned, “If AI stocks consolidate, India could benefit without much risk. But if there’s a global correction, expensive markets like India may see multiple contraction, though recovery is possible in the long run.”
Discussing FII sentiment, he added, “Some investors are taking a relook at India due to its relative underperformance. Others see India as a diversification option outside the AI trade. Overall, arguments for investing here have improved over the last six to eight months.”
With valuations high but selective sectors showing promise, India continues to attract cautious investor interest, balancing global uncertainties with domestic opportunities.
