Pershad reflected on market trends earlier this year, recalling that in May, India was the first major market to recover its post–Liberation Day losses. “If somebody had told me that we’d be talking about tariffs that are higher on India than on China, that would not have been my base case,” he said. Despite recent surprises, Pershad said the firm remains “very constructive on India for the long term,” with Indian equities now offering better entry points than earlier in the year.
Addressing foreign institutional investor activity, Pershad observed that FIIs have been looking for reasons to sell in recent months, but he believes current uncertainty is creating long-term opportunities. He emphasised the importance of active management, citing the dispersion in performance between leaders and laggards across IT services, staples, healthcare, and automotive sectors.Also Read | India risks losing FDI edge if tariff gap with peers widens, warn global strategists
M&G’s India portfolio is spread across 10 different sectors, including healthcare services, higher-end property, auto ancillaries, two-wheelers, and defence. While the firm had reduced its defence exposure after Operation Sindoor, Pershad said some positions have been added back as prices eased.
He concluded that India and the US will remain “long-term partners,” despite current tariff tensions. “Both sides would agree or disagree on who needs the other more,” Pershad said, but the long-term relationship is unlikely to change.
For the full interview, watch the accompanying video
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