Archive · 2 Jun 2025
GQG's Jain: India's Market Driven by Earnings, Not Hype
A financial expert named Rajiv Jain says India's stock market is doing well because companies are making money, not because of wild speculation.
He thinks US stocks are too expensive right now.
The US and China are having trade troubles that go beyond simple taxes on goods.
Because companies are seeking to diversify their manufacturing away from China, India is in a good position to profit.
He suggests shifting some investments from the US to countries that offer reasonable prices and good growth prospects, especially India.
Rajiv Jain of GQG Partners says India's market growth is driven by strong earnings, not hype.
Jain believes US equities are overvalued compared to interest rates and history.
He advocates for rebalancing investments towards better-valued markets like India.
The US-China trade relationship faces challenges due to non-tariff barriers and technology transfer issues.
India is positioned to benefit from the 'China+1' strategy as companies diversify manufacturing.
- Who
- Rajiv Jain, Chairman and CIO at GQG Partners, along with references to the US Treasury Secretary and discussions around US-China relations.
- What
- Rajiv Jain discusses India's market performance, US-China trade dynamics, and global investment strategies.
- When
- In an exclusive interview with CNBC-TV18.
- Where
- Global financial markets, with a focus on the US, India, and China.
- Why
- To assess market valuations, the impact of geopolitical shifts, and the future of global trade.
Global Trade
US vs. Other Markets
Valuation Perspectives
Global Trade
Non-US markets, including India, appear more attractive from a valuation perspective.
US vs. Other Markets
US equities are expensive relative to their history and interest rates, but the US is indispensable due to its innovation and role in capital recycling.
US-China Trade Dynamics
Global Trade
China’s non-tariff barriers, subsidies, and forced technology transfers are the main issues in US-China trade relations, not just tariffs.
US vs. Other Markets
The US is focused on non-tariff barriers and technology transfer in trade with China. The aim is to rebuild its industrial base.
- GQG's View
- Favors India, advocates recalibrating exposure from the US.
- India's Market Driver
- Strong corporate earnings, not speculative exuberance.
- US Market Valuation
- Expensive relative to interest rates; S&P trading at 23-24 times earnings.
- US-China Trade
- Focus on non-tariff barriers and forced technology transfer rather than tariffs.
- China+1 Strategy
- India stands to benefit from companies diversifying manufacturing bases.
