- India’s equity market is seen as a promising opportunity for investors in coming quarters
- AI-driven growth is expected to support markets despite US government shutdown concerns
- Gold, Bitcoin, and commodities like copper are recommended for portfolio diversification
At a time when global investors have been cautious, India's equity market stands out as one of the most promising opportunities for investors in the coming quarters, according to Ben Powell, Chief Investment Strategist for the Middle East and Asia-Pacific at BlackRock.
“India has an important part to play in portfolios going forward,” Powell said, adding that the country's macroeconomic fundamentals remain strong despite headwinds from global trade dynamics.
“It has had a few quarters buffeted by U.S. trade dynamics. Looking forward, I am optimistic about Indian equities. There seems to be a general lack of enthusiasm from global investors, and I think that presents opportunities for us as investors to pick our spots,” he said.
Powell added that India's macro environment looks good while the economy is supported by low inflation and the room for the Reserve Bank of India to issue further rate cuts.
"The Indian economy continues to be resilient from a macro context. Inflation is pretty low, thus giving the RBI room for rate cuts. That's a good starting point for Indian equities to do better in the coming quarters,” he said.
Powell's comments on India comes against the backdrop of the US government shutdown and an uncertain macro environment.
But despite the immediate headwind linked to the US government shutdown, Powell believes the AI-driven "megaforce" will be supporting the markets.
“This kind of confusion has been overwhelmed by the ongoing AI megaforce, which continues to be a huge tailwind for markets,” he said, adding that investors should also think about hard assets such as copper, given the energy demands that will come with large-scale AI and electrification trends.
Powell went on to talk about portfolio diversification, adding that gold and Bitcoin, which recently touched the $125,000 mark for the first time, could be excellent hedges against ongoing volatility.
“Commodities can play a part in a well-diversified portfolio,” he said. “Having a 2% exposure to Bitcoin, for example, could make sense. The same goes for Gold."
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