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Matt Orton, Chief Market Strategist at Raymond James Investment, views India as the firm's largest overweight market outside the US, with a continued preference for financials and banks.
Orton added, “Earnings season has been positive. It has helped support the market from that detox period, we had painful detox period and with a 15% plus drawdown. But as I look at what's working across global markets, one of the things I like to lean into are long term, durable, secular growth themes that are playing out around the world. Some of that's artificial intelligence, some of that's with respect to a strengthening, growing consumer class, and that's particularly relevant to India.”
Among Indian companies, he favours InterGlobe Aviation and sees potential in extending that exposure through names like MakeMyTrip, which benefits from rising consumer demand for travel and the use of technology to lower costs.
He also finds One97 Communications (Paytm) and Jio Financial interesting for their fintech and AI-driven models. While both companies are considered expensive, Orton believes the market is willing to support high valuations when growth is being delivered—and both are doing so.
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While India remains his largest overweight position, he also underscored the importance of diversification, a key strategy he has been advocating to clients. With global growth showing signs of revival and a weaker dollar proving supportive, he is exploring opportunities beyond India as well.
Latin America, particularly Brazil, stands out as an attractive region due to its favorable valuations and recent trade-related shifts. In contrast, Orton remains cautious about China.
While the government has taken steps such as cutting interest rates, he believes these efforts fall short of the substantial stimulus needed to pull the economy out of what appears to be a deflationary spiral. For him, China currently serves more as a short-term trading opportunity rather than a long-term investment.
India, on the other hand, benefits from a rising consumer base and strong coordination between the public and private sectors—factors he sees as foundational for sustained, long-term growth. In his view, India remains a core holding, while China is better approached as a tactical play.
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(Edited by : Shweta Mungre)
