BlackRock expressed confidence
Ben Powell, Chief Investment Strategist of BlackRock Investment Institute, says that the major trends going on in the world, political changes and improvement in stock prices are going in favor of India. He believes that the Indian market is now near a turning point. Speaking to ET Now, Powell said that India’s recent weak performance is not due to domestic reasons but due to external shocks. He said that the situation may look much better in the coming 12 months.
Powell said that the investment environment in the world is no longer the same as before. In the earlier years, from the global financial crisis to the Covid pandemic, just investing for a long time and keeping it untouched also gave good returns, but now it is not so. He said that now we are in a world of political tension, trade tensions and new technology like AI. Therefore, investors now need to invest thoughtfully and selectively. Be it country, sector or specific companies.
impact of ai
Powell said that on one hand Artificial Intelligence (AI) is bringing new opportunities, while on the other hand it is also creating difficulties for some countries. It is changing supply chains, benefiting countries that innovate and hurting countries that lag behind. India’s recent weak performance was also due to external reasons
- Korea, Taiwan and China benefited more than India from the AI wave.
- Trade tensions between America and India increased uncertainty among investors.
Powell said that President Trump’s statements on the occasion of the swearing-in of the new Indian Ambassador to America indicate that a trade agreement can be reached soon, which is positive news for India. He added that Indian shares are no longer as expensive as before. Their value has now come to an attractive level, which can make it a better opportunity for investors.
Expressed confidence in India
Powell refuted the notion that foreign investors frequently oscillate between India and China. He said that India is now becoming a permanent part of global investment. Powell said that India’s stock market is now equal to the total market of Britain and Germany. Despite this, India’s true economic potential is still not fully recognized globally. At the same time, the situation in China is still slow. Problems in the property sector there and decline in population remain major obstacles. However, some select opportunities still exist in China’s AI and engineering sector.
Did you invest more in America?
Powell said that despite some concerns such as one-sided market gains, BlackRock is increasing investments in the US because the AI wave is driven by real earnings, not just hype. He said that this is an important change in human history. AI related companies are showing astonishing growth in earnings.
He also pointed out that long-term investment opportunities around AI are not just in stocks, but also in sectors like energy generation, data centres, copper, and engineering. Powell said that to run the silicon brain of AI, we need trillions of dollars of new infrastructure and this work will not be done by governments, but by private investors.