According to ET Now, Ben Powell, Chief Investment Strategist for APAC at BlackRock Investment Institute, believes foreign investors are only at the very beginning of rediscovering India's potential. Speaking to ET Now from the United Arab Emirates, Powell noted that foreign buying had only just begun in the days prior to the interview, describing the current moment as pre-first inning using a baseball metaphor. He emphasized that when foreigners return, confidence recovers, and higher prices create more buying, creating a positive feedback loop for sustained recovery. Powell rejected the idea that foreign investors have fully priced in India's upside, stating 'Not even close, no' when asked if the so-called 'peace premium' was already reflected in valuations.
As reported by ET Now, Powell highlighted that the energy normalization is very huge for India and can provide a tailwind that is only just beginning. Speaking to ET Now, Powell pointed to two seismic shifts driving his optimism: the normalisation of oil prices following the US-Iran resolution, and a broader repricing of India's long-term growth story by global investors. 'The energy normalisation is very huge for India clearly and can give a tailwind which is only just beginning,' he said, adding that if current conditions hold, the outlook for significant energy importers looks 'quite rosy.' For India, a major energy importer, the shift could be a critical tailwind, with Powell noting that the country had 'suffered by doing nothing wrong,' caught between energy shocks and concerns of missing the AI-driven global rally.
Despite facing challenges including rising inflationary pressures, high oil prices and FII outflows, India has emerged as among the best-performing large economies in the world according to PL Wealth's latest market outlook report. The economic performance remains robust with manufacturing and service PMI figures of 55 and 59.8 respectively in May, significantly outperforming most major economies globally. Inderbir Jolly, CEO of PL Wealth, noted that 'India continues to be an outlier among the leading economies of the world because of the robust domestic economic growth engines like consumption, production, infrastructure spending and the growing trend of savings being financialised.' The active participation of domestic institutional and retail investors has been instrumental in stabilising markets despite high FII outflows.
India's real estate market demonstrated robust resilience with a 23% investment surge to $4.33 billion in H1 2026, according to The Economic Times. The market saw 54 deals marked a record half-year, with a significant shift as domestic investors contributed 64% of capital, representing a record high. The office sector led this growth, attracting $2.3 billion with strong occupier demand and attractive yields. This domestic-led growth signals market maturity and provides a strong foundation for future foreign investment recovery as global conditions stabilize.
According to PL Wealth's latest report, markets are expected to be range-bound in the short term and react to events based on crude oil prices, inflation trends, monsoon trends, geopolitical happenings and changes in earnings expectations. In the short term, investors will be able to invest in quality large-cap stocks and large and mid-cap strategies on a staggered basis. The report highlights that inflation risks remain a concern as rising energy prices, currency depreciation and supply side pressures might pose problems in coming quarters. For fixed income investing, the environment has become tougher with higher inflation expectations and high-interest rate environment, prompting PL Wealth to recommend short-duration and medium-term fixed income investment avenues that provide decent risk-reward. The report also notes that gold is gaining importance as a strategic reserve metal against rising geopolitical uncertainties and inflation concerns.
