Business · Markets · 1 hr ago
Amundi CIO says Indian equities’ weakness is a temporary pause
Vincent Mortier, chief investment officer of Amundi, said Indian shares have weakened for about two years.
He sees this as a temporary pause, not a sign that India’s economic prospects have deteriorated.
Investors have become less positive because of concerns about energy, tariffs and whether artificial intelligence could hurt Indian software companies.
Mortier said valuations have returned to more reasonable levels and Amundi continues to advise clients to buy Indian equities to diversify.
He also said investors are waiting for signs that the rupee has stopped falling, since currency losses can reduce returns.
Other possible catalysts include progress toward resolving conflicts in Ukraine and the Middle East, or a reassessment of highly valued markets.
Mortier said complicated and unpredictable tax rules for foreign investors are another concern.
Vincent Mortier, Amundi’s group chief investment officer, said the two-year weakness in Indian equities is a temporary pause.
He said valuations have returned to decent levels and India’s prospects have not weakened.
Mortier said Amundi continues to advise clients to buy Indian equities for diversification.
He cited geopolitical developments, a possible repricing of AI-related assets and confidence in the rupee as potential catalysts.
He also said the rupee remains a concern because of sentiment, investment flows and the high cost of hedging.
- Who
- Vincent Mortier, group chief investment officer of Amundi.
- What
- He said weakness in Indian equities is a temporary pause and that Amundi continues to advise clients to buy them.
- When
- In an interview during a recent visit to Mumbai; the visit date is not stated.
- Where
- Mumbai, India.
- Why
- Mortier said valuations are back to decent levels and the country’s prospects have not weakened.
This story does not have two clearly opposing sides.
We went from half-full to half-empty. That's excessive.
More importantly, the prospects of the country have not weakened.
So, I think it's a temporary pause, in a way.
We continue to advise clients to buy Indian equities to diversify.
Indian equities experienced weakness, which Mortier described as a temporary pause.
Mortier discussed his outlook for India and other topics in an interview.
- Weakness period
- Two years
- Amundi assets overseen by Mortier
- 2.3 trillion worldwide
- Indian 10-year yield
- Almost 7.3%
- Inflation in India
- Around 4.5%
- Potential 10-year yield
- Gradually decline to 7%, potentially 6%
Sources
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