Indian equities have already absorbed a series of headwinds: valuation compression, tariffs, swings in the AI trade, oil-price spikes, geopolitical shocks and the ongoing US rate cycle. Yet, remain roughly flat over this period. Sid Swaminathan, managing director and CEO, JioBlackRock, says, "Valuations are more reasonable in pockets and the rupee has been relatively stable. So, things do look merrier than the beginning of the year. But the near-term risks have not gone away. We may have to deal with another rough quarter."
“The US rate cycle is still something that people are looking at very closely," he added.
Once that phase passes, he expects the investment environment to turn more constructive, supported by more reasonable valuations, a steadier currency and domestic sectors that could benefit from shifts in the global macro environment.
That thesis is also defending JioBlackRock International AMC (IFSC)'s launch of its first GIFT City product: the JioBlackRock Advantage World Equity Fund (IFSC).
The open-ended fund of funds will invest primarily in BlackRock’s Advantage World Equity Fund, a systematic active-equity strategy with a track record of more than eight years. The underlying portfolio is weighted towards developed markets, particularly the United States, with meaningful exposure to Europe and Japan.