India’s economic position is currently very strong, with above-estimated growth, inflation within target range, and a revival of investments. Consumption is slightly subdued but not due to stimulus. This comfortable position is attracting investors to bring money into India. The market has reached all-time high levels, but valuations are not at all-time highs. The combination of flows, sentiment, and fundamentals in India is positive, with limited supply and aggressive demand. Despite potential ups and downs, investors are recommended to stay invested in India’s long-term growth story. There may be concerns about inflation and supplies, but as long as India delivers on growth, governance, and the green economy, the markets will reward investors. Further expansion is possible, and there is potential for significant capital flows into India if MSCI upgrades Korea out of the emerging market category. The pharma sector is currently attractive and under-owned, while midcap and smallcap valuations should be approached with caution, sticking to quality investments rather than chasing tips or recommendations. It is important to invest in India with conviction in its long-term growth story rather than succumbing to fear of missing out.
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