India remains well placed to benefit from the global shift in supply chains away from China despite geopolitical tensions and higher crude oil prices, according to John Stoltzfus, managing director and chief investment strategist at Oppenheimer Asset Management.
In an interview with NDTV Profit, Stoltzfus said India's long-term investment case remains intact even as markets navigate near-term volatility. He said the country's strengths in finance, manufacturing, pharmaceuticals and technology continue to make it an attractive destination for global capital.
India Positioned For Long-Term Growth
Stoltzfus said the Nifty has recovered nearly 8% from its March lows, although it remains lower on a year-to-date basis. He attributed recent market swings to geopolitical developments, particularly in the Middle East, as well as changes in the global economic landscape.
"The price of oil has been a big thing, I think, for India, for Europe, many European countries, and other countries around the world. It's been difficult because of what has been happening in the Middle East. That said, we look at India as an intermediate- to longer-term story," Stoltzfus said.
He said the global manufacturing landscape is undergoing a structural shift after decades of supply chains being concentrated in China.
"I think in the case of India, India is well-situated based on businesses related to finance, industrial strengths, as well as pharmaceuticals and technology," he said.
Stoltzfus added that market corrections after extended rallies are a normal part of the investment cycle and do not alter India's long-term growth trajectory.
ALSO READ: Nifty Target At 27,000 Even As West Asia Crisis, El Nino Risks Weigh On Market, Says PL Capital
AI Investment Cycle Continues
Stoltzfus said artificial intelligence remains in the early stages of a broader technology shift despite the recent correction in semiconductor stocks.
He said investment by hyperscale technology companies in AI infrastructure and data centres has supported demand for advanced semiconductors. However, he said some moderation in chip stocks was expected after strong gains earlier this year.
"I think things may have gotten a little ahead of themselves. Semiconductor stocks had posted spectacular gains and are now taking a haircut, but a large part of those gains has still been retained," he said.
Oil Market More Resilient To Geopolitical Risks
On crude oil, Stoltzfus said global markets are better prepared to absorb geopolitical disruptions than in previous decades.
He said the rise in oil prices to around $110 a barrel earlier this year unsettled financial markets, but investors are now better equipped to manage prices in the $85-$95 a barrel range.
"The initial shock has largely been digested. Markets today discount both good and bad news much faster because information is available almost instantaneously," he said.
Stoltzfus also said governments have strengthened energy security by investing in infrastructure, including alternative pipeline networks, reducing dependence on vulnerable transport routes.
He said market volatility is likely to persist, but long-term investors are increasingly focusing on structural growth opportunities rather than short-term geopolitical developments.
ALSO READ: Q1 Results Live Updates: Tata Technologies, RIL, JSW Steel, Federal Bank Earnings In Focus
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
