Arvind Sanger highlights India’s growing investment appeal amid global market insights

India’s stock market is becoming more appealing as its valuations adjust to a reasonable level, says Arvind Sanger, Managing Partner at Geosphere Capital Management, while sharing his perspective on global investment opportunities, focusing on India, the US, and China.

Sanger began by addressing the US market, which he described as a “safe place” for investments. However, he cautioned that the hype and short-term expectations around US stocks have made them less appealing for value investors. While the US economy may continue to grow over the next two to three years, much of the good news is already factored into current valuations. He suggested this could be a sign for investors to explore opportunities in other markets.

Turning to India, Sanger highlighted that some high-profile stocks, like Zomato and Dixon Technologies, have seen significant corrections. While this doesn’t mean these companies are now value stocks, it signals a broader trend of India’s market moving into a range where growth opportunities and valuations are more balanced.

He emphasised that if the Indian market experiences further pullbacks, it could present compelling growth opportunities relative to price-to-earnings (PE) ratios.

“So, India is starting to move into the interesting range, US is starting to get to where maybe it is time to take a bit of a breather since a lot of good news has been discounted,” he said.

Sanger expressed a less optimistic view of China, pointing to several structural issues that hinder its long-term growth potential. These include demographic challenges, such as an ageing population and high youth unemployment, along with a struggling real estate sector and the limited impact of potential economic stimulus measures. While stating that China’s stocks may be undervalued and could see short-term rebounds, he argued that these challenges outweigh any immediate gains.

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Sanger emphasised that China’s problems go beyond tariffs imposed by US President Donald Trump and are deeply rooted in the country’s internal economic issues, which undermine its medium to long-term growth prospects.

In comparing India and China, Sanger stated that India offers a more fundamental long-term growth story. Although India has underperformed China in the short term — largely because its valuations had become excessive— he believes this trend is likely to reverse. While China might offer short-term trading opportunities, India’s structural advantages make it a better long-term bet for investors.

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For the entire interview, watch the accompanying video

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