Rajiv Jain’s GQG Partners made a bold move in the first quarter of 2025. Between January and March, they invested more than $2 billion in Indian equities. That’s nearly the same amount they put into India throughout the entire year of 2024. This shows just how confident they are about India’s market outlook.
What does this mean for the average investor? Simply put, a big global player like GQG is betting heavily on India’s future.
Rajiv Jain, the chairman of GQG Partners, explained on CNBC-TV18 on May 26 that this year’s buying spree is much more aggressive than last year. Last summer, the market saw some frothiness — lots of IPOs and promoter selling.
That caused a healthy correction for 6-7 months, which Jain says was needed to “pause and refresh.” After this, GQG stepped in as a strong buyer.
India’s stock rally is largely driven by largecaps now. Jain pointed out that valuations seem supportive, meaning stocks aren’t too expensive compared to earnings. “Valuations are kind of fine, they are not super cheap, but I won’t expect that either, because the outlook is very good,” he said. For this reason, GQG remains overweight on India.
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Where exactly is GQG putting its money? Big chunks are in large banks like HDFC Bank, ICICI Bank, and SBI. Banks are a key part of India’s equity rally, and GQG is heavily invested there.
They are also bullish on utilities, real estate, and infrastructure sectors. In fact, utilities and infrastructure make up half of GQG’s India portfolio. With GQG’s asset base having almost doubled in three years, part of this new money is simply portfolio rebalancing.
Rajiv Jain also shared his take on global trade tensions. He believes countries running trade surpluses with the US, such as Vietnam, may face risks amid the ongoing trade war. India, however, is set to be a “net beneficiary.”
This means India could gain from US policies aimed at bringing manufacturing back home. Brazil and Indonesia are also likely winners in this scenario.
This perspective ties back to why GQG is so bullish on India right now. While some markets face uncertainty, India’s combination of steady earnings, fair valuations, and a supportive global trade environment makes it a smart bet.
Disclaimer:
This article is for information only and not financial advice. Please do your own research or talk to a financial expert before investing. Investing has risks, and past results don’t guarantee future success.
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