Manishi Raychaudhuri, CEO of Emmer Capital Partners, said recent volatility is linked to multiple global factors hitting markets at the same time. He said, “This volatility that you are talking about is partly generated by this unprecedented degree of uncertainty that we’re seeing across the world. You rarely have so many variables that one has to juggle with in such a short span of time.”
He said that despite global volatility, India has remained relatively stable compared with other Asian markets, where declines have been deeper over the past week. He added that improving sentiment linked to trade developments has also supported Indian markets and the currency, even though full details are still awaited.
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On sector opportunities, Raychaudhuri said investors should focus on areas where earnings estimates are moving up, but valuations remain reasonable. He said financials, basic materials, base metals, industrials, and selective consumer discretionary names offer potential opportunities. He added that government policy has shifted towards investment-led sectors and industrial growth.
He also said rate cuts from the Reserve Bank of India may still happen over the next six to nine months, depending on economic conditions.
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On technology stocks, Raychaudhuri said he remains cautious on IT services companies because of disruption risks from AI-based products.
He said, “What we’re seeing now is basically that classic AI loser theme playing out, not just in Indian IT, but across the world. All these service providers, their businesses could get disrupted by the new product offerings that are coming in from the LLMs.”
He said only companies that adopt AI to improve productivity and workforce capability are likely to remain competitive.
On global AI investments, he said his firm prefers companies that supply core infrastructure for AI growth, such as semiconductor manufacturing and high-bandwidth memory providers, mainly in North Asia. He added that India currently has a limited presence in these core AI supply chains.
For the full interview, watch the accompanying video
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