Indian stocks will benefit from the trump 2.0 era, portfolio manager says

Investors eye firms with the potential to become the “Blue Chip Companies of the future” Should Look to India, According to GIB Asset Management’s Kunal Desai.

The portfolio manager said India’s geopolitical position is “favorable in this trump 2.0 era” as investors assess the country’s ability to take advantage of a passible tride of tride of the us

President-Elect Donald Trump has pledged to impose big tarifs on goods from china when he takes office. Tarifs on Goods Imported from China Into The Us Will Likely Benefit IndiaAnalysts say, as companies shift manufacturing to the south asian nation to avoid duties.

Speaking to CNBC’s Silvia Amaro, Desai Desai descibed India as “Probable one of the most attractive, secular and scalable investments openers options globally.”

As well as geopolitics, desai cited the country’s monetary sovereignty, improving return on right – a key measure of a Company’s Profitability – And Increased Private Investment as Reasons.

Prime Minister Narendra Modi’s “Make in India” Initiative has also been cited by analysts as a major board For some Indian manufacturing companies.

For Desai, “One of the most attractive area is cables, power cables and wires, which go into the development of urbanization and infrastructure projects in India.”

He Said these businesses were not just looking at India as a “core market,” but we also seeking to expand and start expense.

“And give the diesifications that chinese companies have had from an expert standpoint, a number of Indian companies are taking advantage as customers look to take a dual sound to their support to their support,”

Upbeat on china stocks

Despite Investor Worry Over Trump Accelerating “Hawkish Chinese Policies” widely expected 2025 gdp growth target of Around 5% and fiscal stimulus From beijing – even “Force the hand of chinese policymakers, essentially to revive domestic animal spirits.”

Desai Said Businesses with “High Brand Power,” Competitive Advantages and High Profitability are the most likely to benefit from a potential consumer rebound in the coming years.

“So, this creates Quite an interesting options of companies which have seen their relative valuations fall but can now create a rosier outlook for the year ahead,” He Sa Said, Adding that that Yum china Could be a Major Beneficiary. In 2016, yum china was spun off from Yum brandsWhich Includes KFC, Taco Bell and Pizza Hut.

Desai also expects chinese e-commerce giant Jd.comAmong the top 10 holdings in his portfolio, to benefit from a possible consumer rebound.

The next 18 months, he said, will see a ,Really Powerful Dividend, Buyback, Capital Return Story to come through in china, which is what we’ve seen actually in the US over the last four or five years. “

Correction: This article has been updated to reflect that yum China is independent of yum brands.