India continues to provide one of the strongest long-term equity opportunities globally, supported by steady economic growth and political stability, according to Vikas Pershad, Portfolio Manager of Asian Equities at M&G Investments.

Pershad noted that India remains a compelling market even as Chinese equities have outperformed so far this year. He highlighted the size and depth of India’s listed companies, with nearly 1,000 IPOs in the past four years and around 7,000 listed companies in total, offering a rich landscape for active equity management.

During a recent visit to India, Pershad said he was further encouraged by the economic growth trajectory and the stability provided by recent election outcomes, reinforcing his positive outlook for 2026 and beyond.

Global AI and Sector Diversity:
On the global artificial intelligence (AI) theme, Pershad noted that while India is seeing parts of this story unfold, the market’s key strength lies in sector diversity. He said, “In markets, there’s always a bubble somewhere. But what we look at is a very long-term growth opportunity.”

Caution on IT Services:
M&G Investments remains cautious on Indian IT services stocks, maintaining an underweight position due to earnings challenges that may persist for one to two years. Pershad added that valuations remain above historical slowdown levels, and the firm’s focus is on prospective earnings, with no strong case yet to reallocate capital from other preferred holdings.

India vs. China:
While China’s equity markets have gained 15–17% year-to-date, Pershad said that India has improved in recent weeks and continues to offer one of the best compounding opportunities globally. He described India as “perhaps the best long-term equity compounding story in the world.”

Broader Asia Outlook:
Looking at the wider Asian region, Pershad highlighted opportunities in South Korea and Japan, noting that these markets may gradually narrow the gap with the US market over the coming years.