Even Sceptics Have Turned Bullish On Indian Stocks, Says SageOne's Samit Vartak

A lot of large funds are showing up for investments in India after the state election results, according to Samit Vartak.

There is no sceptic, and all the sceptics have turned bullish, Vartak, founding partner and chief investment officer at SageOne Investment Managers LLP, told NDTV Profit in an interview.

Inquiries from foreign institutional investors differ significantly from those received in the last two to three years, Vartak said. "Previously, smaller family offices were observed, but there is now a noticeable increase in interest from sovereign wealth funds who are now looking at India."

Overseas investments have crossed Rs 26,000 crore in the first eight days of December, as sentiment turned bullish after the BJP's win in Rajasthan, Madhya Pradesh and Chhattisgarh. That has bolstered the party's chances of a majority return in the 2024 general election. And optimism about India contrasts with global uncertainty.

Vartak cited spending by Indian government and corporates as a growth driver.

Capex is not only being undertaken by the government but also by corporates, he said. There has been a considerable cleanup in the economy and the balance sheets and cash flows of corporate India have shown significant improvement, he said.

Several factors are favoring India, with the exception of valuations. And while valuations are currently high, it is a risk work worth considering the growth opportunity, according to him.

If India fulfills its potential in the next five years, he said, nobody would want to stay out of this market and risk missing out on the opportunity.

Vartak has increased financial holdings within his portfolio, with non-banks comprising a significant portion with the emergence of various financial players, including power finance, home finance, and small finance companies.

He is also "very positive" on capital goods, whether through private or government capex.