Arvind Sanger from Geosphere Capital Management suggests a renewed investor interest in non-US markets, particularly India, due to improved growth prospects. Despite a lackluster previous quarter, factors such as receding geopolitical tensions, supportive RBI policies, and a rebounding US market are fostering confidence. Sanger notes that investors are refocusing on India as a potentially strong growth story this year, expressing optimism that the worst of the economic slowdown is in the past.

Sanger mentions that while Foreign Institutional Investors (FIIs) typically start with large-cap stocks before moving to mid-caps, domestic investment is crucial for driving the mid and small-cap segments. The continuous flow of domestic money, combined with FII interest, creates a rising tide that benefits all market segments. Geosphere Capital Management had previously leaned towards large-cap investments but has recently shifted towards mid-cap stocks, indicating a belief in the potential for growth in these sectors.

Arvind Sanger also highlighted recent investment activities, including purchasing shares in a domestic healthcare, pharmaceutical, and retailing company that remains under the radar of mainstream investors. Additionally, the firm has invested in a domestic cement stock, focusing on companies with attractive valuations and fundamental growth drivers. Sanger emphasizes a preference for domestic-facing, special situation mid and small-cap companies that are less dependent on significant macroeconomic factors.