In an interview with ETMarkets, Pradeep Gupta, Chairman & Managing Director of Anand Rathi Share and Stock Brokers Limited, advises NRIs to allocate 25–35% of their global portfolio to Indian assets for long-term wealth creation. Despite recent market sentiment cooling, Gupta highlights improving earnings and attractive valuations as key opportunities for patient investors.
The Indian market has seen a significant pullback, with FPIs withdrawing approximately $28 billion in 2026. However, Gupta emphasizes that this is a period of mean reversion rather than a structural break. He points to the re-acceleration of earnings growth and stable domestic SIP flows exceeding ₹30,000 crore monthly as indicators of a robust investment environment.
Gupta identifies banking and financial services, infrastructure, construction, manufacturing, and healthcare as promising sectors for NRI investors over the next 5–10 years. He also advocates for mid-cap stocks due to their superior earnings growth and narrowed valuation premium compared to large-caps.
“Sentiment has cooled, and the numbers back that up.”
Pradeep Gupta, Chairman & Managing Director, Anand Rathi Share and Stock Brokers Limited
On the fixed-income front, Gupta notes that Indian bonds offer attractive real yields of 2.5–3% over inflation, making them competitive compared to developed-market bonds. He suggests a diversified approach to Indian fixed-income products, including government securities, high-grade corporate bonds, and NRE fixed deposits.
Regarding real estate, Gupta advises NRIs to limit their exposure to 10–15% of their India portfolio, preferably through REITs, due to better risk-adjusted returns and liquidity compared to direct property investments.
Gupta highlights the importance of understanding tax implications and leveraging DTAAs to optimize investment returns. He dispels common misconceptions about double taxation and emphasizes the benefits of NRE deposits and mutual fund investments for NRIs.
Background
India was among the best-performing major markets globally between 2021 and 2024, and over 20 years it has still outperformed most global peers even in dollar terms. This historical performance underscores the potential for long-term growth despite recent market corrections.
Looking ahead, Gupta suggests that the recent market underperformance presents an improved entry point for investors, with normalized valuations and low foreign positioning. NRIs should consider their repatriation intent and tax jurisdiction when allocating assets to ensure optimal returns.
