Investors Turn to India: 6 Large-Cap Stocks to Watch

Investors are increasingly looking beyond the U.S. for international allocations, with India emerging as a prime destination. Malcolm Dorson, a senior portfolio manager at Global X ETFs, highlighted this trend during an interview on August 24, 2024. He noted that Indian stocks have shown remarkable resilience, participating in global market gains while minimizing losses. The BSE Sensex and Nifty 50 indices have both seen significant increases over the past six months, outperforming major U.S. indices like the Nasdaq and S&P 500. Despite a slowdown in India's economic growth to 6.7% in the April to June quarter, down from 7.8% previously, there are expectations for a rebound. Dorson attributes this optimism to easing inflation and increased government spending. He believes that the current price-to-earnings ratio of around 22, while slightly above historical averages, is justified by improving growth and profitability rates. Dorson is particularly bullish on large-cap stocks, identifying several key players in the Indian market. He emphasizes the potential of companies like Prestige Estates Projects and Titan Company, which cater to the affluent segment of the population. Additionally, he sees promise in Apollo Hospitals, which is poised to benefit from rising demand for quality healthcare. Other stocks on Dorson's radar include Avenue Supermarts, United Spirits, and Dabur India, all of which are expected to thrive as consumer spending rebounds. Overall, the outlook for Indian equities remains positive, driven by structural growth opportunities and a recovering economy.