Matt Orton, Chief Market Strategist at Raymond James, sees the recent sell-off in Indian equities as a chance for investors to reset and reload their portfolios.

Speaking with CNBC-TV18, Orton described the Indian market’s pullback of 7-8% as a healthy correction, especially given India’s strength over the past two years. “Indian equities are starting to look fairly oversold,” he noted, advising investors to focus on high-quality companies with resilient earnings and growth potential.

Orton observed that a Trump win in the US Presidential Elections 2024 might initially place pressure on emerging markets due to higher US interest rates and a stronger dollar.

However, he argued that India and other US-friendly Asian economies could benefit from Trump’s approach to global trade, as companies look for alternatives to China.

In a Harris-led administration, Orton believes India would similarly benefit from “friend-shoring” policies.

Either way, India remains well-positioned to attract investment, he added, emphasising that the country’s favorable outlook holds regardless of the election outcome.

Orton also shared his views on specific stocks.

ICICI Bank is his top pick due to its solid performance and ability to weather volatility.

The IT sector, including stocks like Infosys, also offers promising opportunities for long-term investors, according to Orton.

“The IT services space, which is one that I’ve tended to tactically play over the past year or so, you’ve had decent results. And when you look at companies even like Infosys, there’s good resiliency that’s starting to be shown. So you have meaningful sell offs that presents a good opportunity to reload,” he said.

Consumer names like Hindustan Unilever have also become attractive due to valuation resets.

In the auto sector, Mahindra & Mahindra is a “premier asset” with strong fundamentals, particularly in farm equipment, making it a good candidate for adding to portfolios amidst the broader market dip.

Overall, Orton encouraged investors to focus on high-quality assets within India that are temporarily undervalued.

He sees the current correction as an excellent entry point for investors with a long-term view, especially as India’s GDP growth trajectory remains robust.

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