Tandon said Quant Mutual Fund remains fully invested, except in small caps. “When conviction is missing but data points are bullish, that’s the time to get all in and participate in the rally,” he said. While short-term profit booking may occur, he believes the uptrend could continue.
He listed three reasons for a positive outlook on Indian equities – a stabilising rupee, foreign investors reaching underweight limits, and India’s underperformance relative to global markets. “The rupee has potential to appreciate, FIIs are underweight, and India looks more constructive compared to global equities,” he said.
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Tandon also credited policy actions for improving sentiment. “Government initiatives like interest rate easing, GST benefits and income-tax measures have started showing results,” he said, adding that Diwali feedback indicated better activity on the ground.
Tandon said Quant Mutual Fund is one of the largest shareholders in RBL Bank and remains positive on its prospects. “We spotted the opportunity when the stock was available at ₹5,000-6,000 crore market cap,” he said. Commenting on reports of a foreign investor acquiring a stake, he said the deal could be a “game changer” for the sector but raised concerns about pricing fairness. “If you are selling a controlling stake to an investor, then the investor has to pay a significant premium to the prevailing prices,” he said.
He added that foreign interest in smaller Indian banks shows confidence in the country’s financial system. “Despite the noise, it gives us a perspective that foreigners still have faith in the Indian banking system,” he said, crediting the Reserve Bank of India (RBI) for managing perceptions well. He said such deals could “boost overall confidence about Indian equities and attract more foreign direct investment (FDI).”
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Tandon said the fund remains optimistic about the digital and green energy themes. The banking sector globally will go through radical changes. Whatever banks you are seeing will not exist in this form in the next two decades,” he said, citing the rise of digital banking and CBDCs.
For the full interview, watch the accompanying video
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