Manishi Raychaudhuri turns 'marginally overweight' on India, favours private banks and industrials

Manishi Raychaudhuri, CEO of Emmer Capital Partners, has recently shifted his stance on the Indian equity market, moving to a marginally overweight position in his Asia ex-Japan model portfolio.

The fund is also overweight on Hong Kong/China and South Korea, with a mild underweight on Taiwan.

Speaking about the market outlook, Raychaudhuri explained a nuanced strategy that involves increasing the allocation to India to 19.5% against an 18% benchmark weight, while remaining cautious because of several headwinds.

Raychaudhuri pointed out that while favourable interest rates have been a tailwind for Indian equities, other fundamental variables are lagging. "We are still waiting for the currency to stabilise. We are still waiting for earnings estimates to move up," he noted.

He believes Asian markets may be outperforming India for now, but selective domestic opportunities remain. Raychaudhuri noted that global investors are still not convinced by recent signals on a possible trade deal. “Markets want to see something far more concrete, which is what they have missed all through this year,” he said.

Despite a pick-up in near-term momentum, India continues to lag its Asian peers on currency performance and earnings revisions. Many North Asian markets are showing stronger improvement in earnings estimates, while several Asian currencies have strengthened this year. This contrast, he said, is clearly influencing FII flows.

In India, Raychaudhuri remains constructive on private-sector banks, consumer discretionary names—including autos, hospitals and diagnostics—and large conglomerates such as Reliance Industries. “The outperformance is just beginning to set in,” he said, referring to private banks.

One sector missing from the portfolio is IT services, which he calls an “AI loser” at the moment. He warned that Indian IT companies risk disruption unless they reinvent their business models.

For the entire discussion, watch the accompanying video

Catch all the stock market live updates here

Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

Note To Readers

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.