Amundi CIO: India Sell-Off Is Excessive - 5 Takeaways
In ET's Smart Investing, Vincent Mortier, group Chief Investment Officer of Amundi Group ($2.3 Tn AUM) says sentiment on India has flipped from half-full to half-empty, but fundamentals haven't weakened.
- Indian Equity is a buy on dips: Valuations are back to decent levels. Amundi still advises clients to buy India for diversification. It's a temporary pause.
- Why FIIs are selling: Not the tax rate, but complexity + Rupee fear.
"All the gains you make in the market, you can lose on the currency."
Increasing US bond yields .Bond yields are trading at all time high at 5.3%.
- What will bring them back? The triggers:
- US Bond yield decline
- Peace in Russia-Ukraine / Middle East
- AI repricing - Global allocations are too unbalanced; an AI correction can force rebalancing to India
- Rupee finding a floor
- Where does he like in Asia?
India and Indonesia are his favourites. Both have been hammered recently, but fundamentals and megatrends remain intact.
- China: Attractive valuations but a complex market
- Japan: Expensive and volatile
- Korea & Taiwan: Too concentrated in semiconductor companies - buying Korea is effectively buying two stocks.
Gold is one of the few assets that can provide a good hedge against currency debasement risks, preserve purchasing power, and hedge against geopolitics and inflation. He believes the global trend will continue, and any pullback in gold prices is a good opportunity to buy gradually and average your purchases.