How Indian Equities Could Thrive amid Market Gloom

Summary

Devina Mehra of First Global argues that deeply negative sentiment and reasonable valuations set the stage for a recovery in Indian equities. She dismisses the notion that only AI is driving markets and notes India's diversified industry base. She remains optimistic but globally diversified.

• Sentiment on Indian equities is deeply negative, which historically signals better forward returns.
• Valuations in India are not as high as commonly believed compared to historical averages and other markets.
• India has a broad range of industries beyond AI, unlike many other emerging markets.
• Foreign portfolio flows are not strictly necessary for Indian market performance; domestic flows matter.
• The US market is not solely driven by AI; other sectors like semiconductors and hardware are also performing.
• Suppliers to mega-scalars for capital expenditure enjoy pricing power, but no specific names are given.
• The speaker remains globally diversified rather than being 'all in' on Indian equities.
• Indian tech shares fell 6.3% recently, but the broader market is expected to open higher.