GST 2.0, S&P upgrade may spur FII reweighting to India: Motilal Oswal AMC

Market outlook: We believe the market will reward companies that consistently deliver strong earnings growth, regardless of whether they are large-cap, mid-cap, or small-cap, says Ajay Khandelwal

Foreign investors could raise their India allocation in Indian equities as GST 2.0 reforms and S&P upgrading India’s credit rating bring fresh energy, says AJAY KHANDELWAL, fund manager, Motilal Oswal AMC, to Sirali Gupta in an email interview. Khandelwal also suggests sectors for long-term bets and explains how rising DII dominance is bolstering market stability. Edited excerpts:

With GST 2.0 reforms and S&P Global's rating upgrade, how do you view India's positioning among emerging markets?

In the last year, Indian markets rose only about 3 per cent, while other emerging markets were up nearly 19 per cent. Now, two big changes —