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Schroders, a major asset manager, holds a cautious view on Indian equities. The firm is underweight due to slow growth and high valuations. However, Schroders sees significant long-term potential for India. Improved economic performance and supportive valuations would lead to a more constructive outlook on Indian equities. Domestic flows provide a market floor.
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The Indian Rupee strengthened significantly on Wednesday, closing at 88.0750 against the US Dollar. This sharp appreciation followed substantial dollar sales by the Reserve Bank of India. Market observers believe this intervention aimed to curb speculative long-dollar positions. The Rupee had previously traded within a narrower range for three weeks.
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Positive signals from high-frequency indicators paint an optimistic picture for growth in the September quarter. Nevertheless, Reserve Bank of India Governor Sanjay Malhotra has urged caution for the latter half of FY26, highlighting concerns over the repercussions of US tariffs.
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