This week’s message is direct: an India-only portfolio may feel familiar, but familiarity is not the same as safety or superior returns

From Ajay’s Desk | 21th June 2026

In his latest interaction on NDTVProfit, Ajay argues that investors who diversified globally have done well, while those who stayed entirely in India — especially through passive mutual fund exposure — have had far less to show for it.

His broader point is that India’s underperformance is not just a recent event; it reflects deeper structural issues, expensive valuations, and a market that requires active positioning rather than blind loyalty.

What He’s Seeing (Beneath the Surface)

Global diversification has worked, while a pure India strategy has left many investors disappointed over the last two years.

India’s weaker long-term return profile is, in his view, structural rather than merely the result of recent geopolitical noise.

Domestic flows continue to absorb FII selling, but that does not automatically create good shareholder outcomes when valuations remain stretched.

Where He’s Finding Opportunity

In this phase, Ajay’s current sectoral bias is clear:

Autos, where India remains globally competitive and has genuine scale advantages.

CDMO, where India is second only to China and still has a credible long-term export story.

Global markets, where valuations in several world-class businesses look more reasonable than many Indian large caps.

FCNR-B deposits and dollar-linked allocation, which can offer attractive guaranteed dollar returns compared with the volatility of expensive domestic equities.

What Changed This Week

The real debate shifted from “should we stay bullish on India?” to “why are investors still paying extreme multiples for businesses with ordinary return prospects?”
Ajay’s comparison is blunt: if Indian large caps can trade at 70–80x earnings, it becomes hard to dismiss cheaper global names on valuation grounds alone.

Ajay’s Underlying Message

“This is not a market where you can buy, hold, and sleep — you have to stay alert, selective, and willing to move.”

Why This Matters Now

A purely domestic portfolio can miss better value, stronger earnings quality, and more attractive risk-reward elsewhere.
High valuations reduce the margin of safety, even when the underlying story sounds strong.

In a market like this, capital preservation and flexibility matter as much as chasing the next headline theme.

A Conversation Worth Having

If your portfolio is still built around the assumption that India alone will do the heavy lifting, this may be the right time to reassess the balance between domestic conviction and global opportunity.

The goal is not to give up on India. It is to stop confusing patriotism with portfolio construction, and to allocate capital where risk-adjusted returns actually look compelling.

We would be happy to help you re‑position for a world where rates normalise, the rupee is more honest, and markets reward prudence over complacency.

blogs

Latest market intelligence

Select category by blogs

blogs

Latest market intelligence

Select category by blogs