Florian Weidinger, CEO of Santa Lucia Asset Management, said momentum in Asian markets is concentrated in three stocks, led by chipmakers, while India's energy sector offers long-term investment opportunities.
Asian equity markets have reached a “concentrated moment”, with momentum increasingly dominated by just three stocks, according to Florian Weidinger, CEO of Santa Lucia Asset Management. He told NDTV Profit that chip stocks are driving market momentum across Asia, reflecting the broader global focus on artificial intelligence (AI) and data centres.
“80% of P&L in Asia belongs to three stocks,” Weidinger said, highlighting the concentration of market gains and the risks this could pose to investors.
He described India's equity market as currently “vulnerable” amid global uncertainty, although he noted that MSCI India offers diversification benefits. Weidinger also said he has been underweight on India since early 2024.
India's benchmark valuations remain below some of the elevated levels seen in previous periods. The Nifty 50 is currently trading at a price-to-earnings (PE) multiple of 19.6 times, while the Sensex trades at 19.7 times.
Despite headwinds, Weidinger said India's PE remains strong, pointing to the market's underlying investment appeal even as global capital flows and sectoral momentum remain concentrated.
FIIs Sell Rs 4.07 Lakh Crore In 2026; DIIs Buy Over Rs 7 Lakh Crore
Foreign institutional investors (FIIs) have remained major net sellers of Indian equities in 2026, while domestic institutional investors (DIIs) have continued to absorb the selling pressure.
So far in October, FIIs have net sold shares worth Rs 49,934.93 crore through October 15. In contrast, DIIs have net bought equities worth Rs 51,829.41 crore during the same period.
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For the year to date, FIIs have offloaded Indian equities worth Rs 4,07,601.50 crore, while DIIs have invested a net Rs 7,06,728.39 crore, highlighting the scale of domestic institutional support amid sustained foreign outflows.
Weidinger noted that DIIs in India have been investing more even as FIIs withdraw capital, an important dynamic for the domestic market's ability to absorb external selling pressure.
AI, Data Centres Drive Global Market Momentum
Weidinger said the AI and data-centre trade is dominating markets across the globe, with chip stocks leading momentum in Asian equities. However, the concentration of returns in a small number of stocks raises questions about the sustainability and breadth of the rally.
With a large share of Asian market performance linked to just three stocks, investors may need to look beyond headline index gains to assess the underlying strength of the rally.
India Energy Sector Offers Long-Term Opportunities
Despite his cautious stance on Indian equities, Weidinger remains positive on select sectors, particularly energy.
He identified India's energy sector as an option for long-term investors and expressed a positive view on power, oil and gas companies.
India's energy demand and investment requirements could offer opportunities over a longer investment horizon, even as near-term market conditions remain vulnerable to global uncertainty and foreign fund outflows.
Indonesia Stocks Face Overhang From MSCI Decision
Weidinger also flagged a potential overhang for Indonesian equities following an MSCI decision, suggesting that developments around index-related assessments could weigh on investor sentiment and market performance.
His broader assessment points to a global market environment in which AI-led concentration, foreign capital flows and valuation concerns are shaping investment decisions, with India offering diversification and selective long-term opportunities despite near-term vulnerabilities.
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