Amundi Investment Institute sees a potential turning point for Indian equities if the Iran war ends, given India's heavy reliance on oil imports. Alessia Berardi, head of global macroeconomics and emerging markets strategy, said she is "quite positive" citing improving private investment and economic data. The NSE Nifty 50 Index has fallen nearly 14% this year, among Asia's worst performers, hit by $30 billion of foreign outflows and high oil prices driven by Strait of Hormuz disruptions since late February. Berardi favors defense and manufacturing stocks, which have rallied over 16% as India ramps up domestic equipment production.
The Reserve Bank of India upgraded its fiscal year growth forecast to 7.1% from 6.7%, with the economy expanding 7.8% in the June quarter. Berardi said global investors may see the conflict's end as a "tipping point" for India, adding she sees "the seeds of a good economic performance" despite pessimistic market perception.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing