She said India’s growth outlook has also been helped by the Reserve Bank of India’s proactive stance, including rate cuts that have improved financial conditions. Despite premium valuations, India continues to attract flows from global investors. “Valuations may not look amazing, but that’s always been the case with India,” Chaudhuri said, suggesting that the long-term bull case remains intact.
On broader market sentiment, she explained that geopolitical shocks rarely have a lasting effect on equities. “Look back 20 years… geopolitical events have not really had a role to play” over a three-month horizon, she said, adding that markets are instead focusing on robust corporate earnings, which nearly doubled expectations and were broad-based across sectors. At the same time, rate-cut cycles in emerging markets are helping support risk assets globally.
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Chaudhuri cautioned that oil price spikes are only a real threat if they stay elevated for an extended period, especially for major importers like India.
On the US dollar, she expects moderation over the medium term, driven by diversification flows and increased hedging by global investors, but emphasised that “this is not about USD not being a reserve currency.” Instead, she said, it reflects concerns over US fiscal fragility and shifting capital flows, not a fundamental challenge to the dollar’s dominance.
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For the entire interview, watch the accompanying video
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