India Strategy – The perfect storm: rising macro and geopolitical risks
Published on 13 Oct 2026
NIFTY has seen a decline of 8.2% in past 6 weeks and 6% YTD making India amongst the worst performing major markets globally. Markets are turned jittery on relentless FII selling amidst growing concerns around 1) likely impact of 13% monsoon deficit (47% of subdivisions and 42% of area) on agriculture production and rural demand 2) rising inflation due to crude and Agri commodities amidst disruption in global supply chain 3) shift in RBI stance with 25bps repo rate hike in line with rising global yields. We are overweight on Capital Goods, Healthcare, Banks, Metals, Diversified Financials, Telecom and Ports. We are under weight on Auto, IT Services, Consumer, and Oil and Gas.
