She pointed out that Indian investors operate within a relatively narrow range of options. “Indian investors don’t have too many choices,” she said, adding that commodities such as metals, gold and silver are likely to remain in focus this year. However, she warned that much of the rally may already be priced in, making entry points critical.Real estate, she noted, is another asset class that could see renewed interest. Now that interest rates are no longer rising and the outlook is flat or down, the sector can benefit. Meanwhile, equities continue to dominate portfolios, not least because most Indian investors cannot invest abroad. “They have to appreciate the hunt,” she said.
When asked where that hunt for value might lie, Sinha flagged real estate as an immediate area of interest and suggested a selective approach to Indian IT. The sector has lagged, she explained, largely due to concerns that Indian companies cannot keep pace with global AI innovation. While companies are committed to AI and making progress, she says the scale still lags behind developments in the US and China.
She also highlighted the potential for a recovery in India’s investment cycle. A rebound in capital spending, combined with potential tailwinds from trade developments such as EU agreements, could support exporters and the manufacturing ecosystem. Energy, including oil and gas, is another area she sees promise in, driven by the increasing computing and power requirements associated with AI.
That said, Sinha emphasized that broad sectoral calls may not work in the current environment. “It’s very stock-specific,” she said, adding that value opportunities could emerge even within the small-cap universe. On global diversification, Sinha acknowledged that India has not been the preferred destination for international investors over the past year. Commodity-rich emerging markets such as South Africa and Brazil have benefited from the commodity rally, while China has attracted attention due to low valuations and a subsequent recovery. Europe has also generated inflows.
India, she said, lacked a valuation cushion, did not play a prominent role in the global AI innovation narrative and offered limited exposure to commodities compared to markets such as Canada or Brazil. As a result, it missed many of last year’s dominant global themes.
On consumption, Sinha said this theme remains structurally intact for India, supported by demographics, but cautioned against overall exposure. The space is highly competitive and increasingly inventory specific. Rural demand is showing signs of recovery, with the auto sector acting as a useful proxy, and further support could come from the upcoming Budget.
However, she noted that earnings growth for several consumer-oriented companies has slowed, in some cases even falling to single digits. That is why she prefers to express the consumption theme indirectly, especially through the financial sector.
In a market characterized by uncertainty and rapid shifts in global capital, Sinha’s message was clear: there are opportunities, but investors need patience, discipline and a sharp focus on individual stocks rather than broad narratives.
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