Rupal Bhansali, chief investment officer-international & global equities at Ariel Investments, on Tuesday, said that she would prefer to wait for opportunities in the Indian equity market.
“The earnings surprises that have occurred in the Indian financial sector have also occurred in the global emerging market financial sector, except that the global emerging market financial sector is cheaper than the Indian counterparts and therefore, offer more opportunity,” she said.
According to her, sustained earnings growth in India will make valuation compelling. “So far what has alluded India over the last couple of years is earnings growth that is ahead of expectations. If India is able to report that on a sustained basis that would make valuations far more compelling,” said Bhansali.
On investments, she said, “It is important to buy depressed securities, not distressed ones. Therefore, if you were to ask my opinion, I think there is more value and optionality in defensives than in cyclical.”
For the entire interview, watch the video