US, India, Taiwan lead for investments; Buy Indian stocks on dips: Standard Chartered
“The US, India, and Taiwan have the best returns on equity,” said Rajat Bhattacharya, a Senior Investment Strategist at Standard Chartered, in an interview with CNBC-TV18 on Tuesday.
“If those two keep working and there is no reason why we should doubt those, then India is always a buy on dips,” Bhattacharya added.
The Stan-Chart investment strategist explained that India offers growth, especially now that the political risks have diminished with the current government starting its third term. He believes this government will likely concentrate on boosting rural consumption and infrastructure. The increased focus on rural areas should benefit sectors like tractor, farm, and motorcycle sales. This will support earnings growth and maintain strong returns on equity (RoE), making India a standout market.
Consequently, he expects India to attract more global investments in both equities and bonds, especially with the upcoming inclusion in indices.
Also Read: India set for decade-high $2 billion bond inflows around JPMorgan index inclusion day
When asked about opportunities arising from the Union Budget, Bhattacharya said he anticipates market fluctuations until the budget is announced, which will likely provide clarity on growth-supporting measures for boosting rural consumption while maintaining fiscal stability.
He emphasised that the recent RBI dividend received by the government should help balance any additional spending on rural consumption and infrastructure, thereby mitigating fiscal risks. Once these assurances are in place, he expects new investments to flow into the market.
Also Read: RBI dividend good for fiscal position of the govt: Finance Secretary Somanathan
Talking about global markets, Bhattacharya mentioned the importance of monitoring the upcoming French elections and paying attention to next week’s US job market and employment data.
For the entire interview, watch the accompanying video
(Edited by : C H Unnikrishnan)
