Household savings in India has always been a big number (~US$500 billion) and only a small part of it was in financial instruments, let alone equities. The demonetization exercise in November 2016 encouraged the shift of household savings into financial assets.

Household savings in India has always been a big number (~US$500 billion) and only a small part of it was in financial instruments, let alone equities. The demonetization exercise in November 2016 encouraged the shift of household savings into financial assets. Driven by liquidity, there seems to be a palpable sense of euphoria in Indian equity markets. As such, our Indian equities portfolio is positioned cautiously in this environment. Against this backdrop, we discuss our largest holdings, which we believe still have a tremendous opportunity to keep growing. We wait patiently for market corrections to add to them.

 

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