In an interview with ET Now, Vikas Khemani addressed global events such as Moody’s downgrade of the US and China’s lending rate cut, emphasizing that they do not undermine the robust fundamentals of the Indian market. While acknowledging the potential for short-term sentiment impact, he asserts India's strong position to navigate these shifts, according to ETMarkets.com.

Khemani views uncertainty as a constant in markets but notes significant concerns like tariffs and border tensions have largely subsided. He expresses optimism about Indian markets, suggesting that favorable progress on the BTA with the US could trigger further rallies. He cites increased FII flows and strong domestic activity as drivers of positive sentiment, according to ANI.

Vikas Khemani dismisses fears regarding a US economic slowdown, noting long-standing issues like high debt and credit delinquencies. He maintains that the Indian IT sector is resilient and not solely reliant on the US economy, supported by structural themes such as digital transformation and cost-efficiency, according to TIL Creatives.

Khemani is bullish on sectors driven by domestic demand, highlighting banking, manufacturing, and pharmaceuticals as key areas. He observes strong performance in select mid and small-cap IT and consumption names, advocating a focus on India’s structural growth sectors, according to Agencies.

Reflecting on the Berkshire Hathaway AGM, Vikas Khemani expressed inspiration from Warren Buffett’s values, particularly Buffett’s emphasis on long-term investing, association with high-quality individuals, and disciplined capital allocation. He also admires Buffett's humility and succession planning, according to IANS.

Vikas Khemani is confident in the resurgence of foreign investor interest in India, projecting accelerated FII flows once the Fed begins cutting rates. He points out India's currently low weight in global portfolios, suggesting potential inflows exceeding a trillion dollars over 8–10 years as this weight increases, according to ETMarkets.com.

Vikas Khemani states he was never negative about the earnings season, anticipating improved liquidity and easing interest rates to significantly boost corporate profitability. He forecasts upward earnings revisions by Q2 FY26, with sectors like banking expected to perform well even in the near term, according to Shutterstock.com.

Regarding the energy sector, Vikas Khemani is cautious about renewable energy due to high valuations, preferring conventional energy plays. He acknowledges the potential in India’s growing energy demand and the global energy transition but advises careful consideration of risk-reward metrics, according to ETMarkets.com.

Vikas Khemani believes the market is reasonably priced overall, despite some cooling in frothy valuations. He advises against investing in narrative-driven sectors lacking fundamentals, urging investors to focus on sustainable, growth-oriented businesses. He suggests India is unlikely to trade at low valuations given its strong growth prospects, according to ETMarkets.com.

In summary, Vikas Khemani emphasizes that India remains a standout in the global economic landscape. He encourages investors to stay focused on fundamentals, ignore short-term market noise, and capitalize on long-term structural growth. With improving earnings, rising FII flows, and strong sectoral trends, he believes investors have ample reason for optimism, according to Getty Images. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)