New Delhi, May 4: India has emerged as a preferred destination for global capital, outperforming China in attracting strong investment flows even as global equity markets staged a recovery in April, according to a report by Quant Mutual Fund.
The report highlighted that global markets rebounded during April after a dip in March, supported by easing geopolitical tensions and improving investor sentiment. Against this backdrop, India stood out due to its robust macroeconomic fundamentals and sustained growth momentum.
A key factor driving investor preference is India’s nominal GDP growth, which continues to outpace that of China. Analysts noted that this growth advantage positions India as an increasingly attractive investment destination in the global landscape.
The report also observed that the recent correction in Indian equity markets-particularly in the small-cap segment-appears to have largely stabilized. Improving corporate earnings are expected to further support market expansion in the coming months.
India’s stable fiscal and monetary environment, combined with supportive liquidity conditions, is likely to encourage credit expansion and strengthen the outlook for financial services. These factors are contributing to sustained investor confidence despite global uncertainties.
The analysis suggests that the current phase may offer a favourable entry point for investors. It recommends a portfolio strategy focused on large-cap stocks, with selective exposure to mid-cap and small-cap segments to balance growth and risk.
Sector-wise, the report identifies energy, infrastructure, financial services, telecom, pharmaceuticals, and data centres as preferred investment areas. However, it remains cautious on manufacturing due to concerns over input costs and supply chain disruptions.
Globally, market performance showed strong gains. In the United States, the US Federal Reserve kept interest rates unchanged, supporting equity markets. US equities rose by around 9 per cent during April, while India’s Nifty 50 gained 6.7 per cent, outperforming most major markets.
In comparison, China’s Shanghai index rose 5.6 per cent, while Japan’s Nikkei 225 recorded a sharp surge of 11.6 per cent.
The report also noted that a ceasefire agreement involving the United States, Israel, and Iran on April 8, later extended indefinitely, contributed to stabilising global sentiment. However, geopolitical risks persist, including a US naval blockade of Iranian ports.
In commodities, gold and silver prices declined by nearly 4 per cent during April, while Brent crude prices rose by about 8 per cent, reflecting shifting global demand and supply dynamics.
Despite earlier volatility, Indian markets showed resilience. Between February 27 and April 30, the Nifty fell by 1,181 points (4.7 per cent), but rebounded strongly in April alone, gaining nearly 1,318 points-around 6 per cent-signalling renewed investor optimism.
