Shikhara Investment’s Rahul Chadha expects India’s market performance to align with the region, and sees opportunities in consumption, manufacturing and healthcare.
Shikhara Investment’s Rahul Chadha expects India’s market performance to align with the region, and sees opportunities in consumption, manufacturing and healthcare.
By Alpha Desk
Rahul Chadha, Founder and CIO of Shikhara Investment expects the Reserve Bank of India (RBI) to cut rates either this week (December 5) or in the next meeting, but believes the central bank may hold some room to act later based on growth conditions.
According to Chadha India’s stock market underperformed other Asian markets this year. He expects performance to normalize, adding that “now the performance is going to be in line with the region.”
Chadha said Shikhara Investment shifted some funds from China to India in the fourth quarter and closed underweight positions. He pointed to better results from banks, Reliance Industries and consumption-linked sectors supported by goods and services tax (GST) changes.
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Looking at economic growth, he said strong gross domestic product (GDP) data is helpful only if it pushes corporate revenue and earnings higher. With low inflation, he expects nominal GDP growth in high single digits.
Trade discussions with the United States remain a key factor. Chadha said investors are still waiting for clarity. “Hopefully the additional 25% tariffs are withdrawn by the end of this year,” he noted.
He also pointed out that India’s currency has weakened even as foreign exchange reserves have risen, reflecting concern over the fiscal deficit and lower-than-expected tax revenue.
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On foreign investor behaviour, Chadha said flows will depend on demand strength in early 2026 and progress on tariffs. “If somewhere the tariffs are reduced… I think that’s where FIIs get bullish,” he said.
Looking ahead, he sees opportunities in tier-2 and tier-3 cities through mass-market consumption and Indian manufacturers supplying export markets, including European aerospace and automotive segments. He also continues to like hospitals and healthcare.
For the full interview, watch the accompanying video
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(Edited by : alphadesk )
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