That said, the last few weeks saw schizophrenic trading in global markets which underscored the broad market’s lack of conviction on anything. Liquidity and fund flow chasing index performance had seen markets post a significant recovery off the lows established in autumn last year, largely on the back of AI-driven exuberance and a view on a US soft-landing and imminently lower interest rates. It is now quite apparent that sentiment had been fragile at best and markets, which were looking for an excuse to sell off, suddenly found several reasons.
The Tantallon India Fund closed 4.65% higher in July, showing it was another good month that reflected strong quarterly results for our portfolio holdings, sustained flows into domestic equity mutual funds, and positive foreign institutional fund inflows.
We continue to have strong conviction in India’s ability to decouple from the volatility in global capital markets on the back of demographic tailwinds, a decade of policy reforms and fiscal discipline, and a private sector capex cycle amplifying the government’s investments in infrastructure and digitisation, which sustains industrialisation and job creation.
