Latest news with #VivekPaul
Economic Times
04-07-2025
- Business
- Economic Times
India growth prospects robust, justify high valuation: BlackRock Research
Mumbai: A BlackRock research platform has pegged India's current equity risk premium (ERP) around 4.9%, close to the metric's historical average, indicating that valuations may not be as stretched as high earnings multiples imply. ADVERTISEMENT In its Mid-Year 2025 Global Outlook, BlackRock Investment Institute said stable policies and rising domestic demand have continued to attract strong investor interest in India, even amid elevated equity valuations. It believes that India's robust growth prospects justify the valuation premium over the long term. ERP is a valuation gauge reflecting the extra premium that investors require to compensate for the additional risk of equity investment compared with a risk-free asset. The MSCI India Index currently trades at a forward P/E of around 22.5, slightly above its 10-year average and nearly twice that of broader emerging markets. Among emerging markets, the Institute sees better investment opportunities in India, while favouring Japan among developed markets. "India offers one of the most compelling opportunities across emerging markets for investors looking to tap into mega forces," said Vivek Paul, head of portfolio research, BlackRock Investment Institute. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
04-07-2025
- Business
- Time of India
India growth prospects robust, justify high valuation: BlackRock Research
Mumbai: A BlackRock research platform has pegged India's current equity risk premium (ERP) around 4.9%, close to the metric's historical average, indicating that valuations may not be as stretched as high earnings multiples imply. In its Mid-Year 2025 Global Outlook, BlackRock Investment Institute said stable policies and rising domestic demand have continued to attract strong investor interest in India, even amid elevated equity valuations. It believes that India's robust growth prospects justify the valuation premium over the long term. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Palestinian Territory: New Container Houses (Prices May Surprise You) Container House | Search ads Search Now Undo ERP is a valuation gauge reflecting the extra premium that investors require to compensate for the additional risk of equity investment compared with a risk-free asset. The MSCI India Index currently trades at a forward P/E of around 22.5, slightly above its 10-year average and nearly twice that of broader emerging markets. Among emerging markets, the Institute sees better investment opportunities in India, while favouring Japan among developed markets. "India offers one of the most compelling opportunities across emerging markets for investors looking to tap into mega forces," said Vivek Paul, head of portfolio research, BlackRock Investment Institute.
Economic Times
17-06-2025
- Business
- Economic Times
Does US continue to be the most preferred destination in the long haul? BlacRock's Vivek Paul answers
Vivek Paul, Global Head of Portfolio Research and UK Chief Investment Strategist, BlackRock Investment, says fueled by the dominance of AI and its leading companies, the US assets are currently favored in a 6 to 12 month tactical view. While the US is expected to maintain a significant role in investor portfolios due to its current economic strength, long-term macro anchors are being challenged. The range of uncertainty in the long run is unprecedentedly high. ADVERTISEMENT History tells us that wars do happen and the markets climb the wall of worry. Is it any different this time? Vivek Paul: It is always impossible to guess the near-term news in an environment such as this. But the thing to watch is around energy prices, oil prices, and that has moved 10-15% in the course of the last week. Whether or not that has a longer-lasting impact on the global economy will depend on the longevity of the conflict and the spillover effects. But oil has to be watched. On the flip side, do you think the tariff uncertainty has abated or are the markets still a little bit on tenterhooks about that? Vivek Paul: I do not think it is debated, and we should anticipate this to be the new normal. We are in an environment where macro uncertainty is structurally higher and it is impossible to guess the next blow-by-blow in the tariff dynamic. What we should consider is a broader impact around this. Markets have played a stabilising role in the course of the last couple of months. Whenever we have seen extreme moves, we have seen market forces dictate a shift. For instance, the US has been very reliant on foreigners for the funding of its debt. Think about the interconnected nature of global supply chains. Whenever we push extremes in market pricing, that automatically leads to some element of a shift in that policy stance. I do not think it is behind us. What I would say is that the macro data is yet to fully reflect the impact. Even in an environment where we have certainty from now on, we are yet to see that come through in the macro data. Recent macro data in the United States points to some of the growth impacts playing out. We are seeing some element of small contraction in terms of the quarterly figures. We have seen some element of a slowdown in CPI, it does not yet reflect the full impact because companies are yet to make decisions. They are holding off on account of uncertainty. Given that the world is in so much flux on not just geopolitics, but the repercussions and bearing of it all on the economics as well. What happens to longer-term money? Would you say the US is not the most preferred destination in the long haul or does that view not change? Vivek Paul: We have got an overweight to US assets in our 6 to 12 month horizon tactical views and it is led by the idea that AI as a structural mega force will continue to dominate the global environment for a period of time and the US has many of the best companies in that space and is really well placed to take advantage of that. ADVERTISEMENT When I look further, when I look at the longer term, we need to start from the current environment that we are in. The US is the dominant economic player and it is hard. We have seen this in recent months. It is hard to massively change the shape of the global economy in a short space of time. We would anticipate US assets to continue to play up the bulk of investor portfolios. But in the long run, no one can have certainty here. There is a much wider range of potential outcomes than there ever has been before. Long-term macro anchors that we have built asset allocations around for the last 30-40 years are being more challenged. So, the idea is we should start by thinking US assets will play a sizable role and continue to do that. But we need to acknowledge that the range of uncertainty in the long run is just unprecedentedly high. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
17-06-2025
- Business
- Time of India
Does US continue to be the most preferred destination in the long haul? BlacRock's Vivek Paul answers
Vivek Paul , Global Head of Portfolio Research and UK Chief Investment Strategist, BlackRock Investment , says fueled by the dominance of AI and its leading companies, the US assets are currently favored in a 6 to 12 month tactical view. While the US is expected to maintain a significant role in investor portfolios due to its current economic strength, long-term macro anchors are being challenged. The range of uncertainty in the long run is unprecedentedly high. History tells us that wars do happen and the markets climb the wall of worry. Is it any different this time? Vivek Paul: It is always impossible to guess the near-term news in an environment such as this. But the thing to watch is around energy prices, oil prices, and that has moved 10-15% in the course of the last week. Whether or not that has a longer-lasting impact on the global economy will depend on the longevity of the conflict and the spillover effects. But oil has to be watched. On the flip side, do you think the tariff uncertainty has abated or are the markets still a little bit on tenterhooks about that? Vivek Paul: I do not think it is debated, and we should anticipate this to be the new normal. We are in an environment where macro uncertainty is structurally higher and it is impossible to guess the next blow-by-blow in the tariff dynamic. What we should consider is a broader impact around this. Markets have played a stabilising role in the course of the last couple of months. Whenever we have seen extreme moves, we have seen market forces dictate a shift. For instance, the US has been very reliant on foreigners for the funding of its debt. Think about the interconnected nature of global supply chains. Whenever we push extremes in market pricing, that automatically leads to some element of a shift in that policy stance. I do not think it is behind us. What I would say is that the macro data is yet to fully reflect the impact. Even in an environment where we have certainty from now on, we are yet to see that come through in the macro data. Recent macro data in the United States points to some of the growth impacts playing out. We are seeing some element of small contraction in terms of the quarterly figures. We have seen some element of a slowdown in CPI, it does not yet reflect the full impact because companies are yet to make decisions. They are holding off on account of uncertainty. Live Events You Might Also Like: US stocks rally over 1% as investors hope for de-escalation of Israel-Iran conflict Given that the world is in so much flux on not just geopolitics, but the repercussions and bearing of it all on the economics as well. What happens to longer-term money? Would you say the US is not the most preferred destination in the long haul or does that view not change? Vivek Paul: We have got an overweight to US assets in our 6 to 12 month horizon tactical views and it is led by the idea that AI as a structural mega force will continue to dominate the global environment for a period of time and the US has many of the best companies in that space and is really well placed to take advantage of that. When I look further, when I look at the longer term, we need to start from the current environment that we are in. The US is the dominant economic player and it is hard. We have seen this in recent months. It is hard to massively change the shape of the global economy in a short space of time. We would anticipate US assets to continue to play up the bulk of investor portfolios. But in the long run, no one can have certainty here. There is a much wider range of potential outcomes than there ever has been before. Long-term macro anchors that we have built asset allocations around for the last 30-40 years are being more challenged. So, the idea is we should start by thinking US assets will play a sizable role and continue to do that. But we need to acknowledge that the range of uncertainty in the long run is just unprecedentedly high. You Might Also Like: How will escalating Israel-Iran conflict, zooming oil price impact global inflation? Anurag Singh answers
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Business Standard
11-05-2025
- Business
- Business Standard
We see India as a relatively bright spot: BlackRock Investment's Vivek Paul
Mid and smallcaps have seen frothy valuations come off the boil, creating scope for stock-specific opportunities amid market dislocations, Vivek Paul said Listen to This Article Markets have clawed back some ground after Donald Trump's tariff threats and India-Pakistan tensions rattled sentiment. London-based VIVEK PAUL, head of portfolio research at BlackRock Investment Institute, tells Puneet Wadhwa in an email interview that while gold remains a useful portfolio diversifier in the current environment, investors should weigh any major moves carefully. Edited excerpts: Some see India as a relatively safe haven for equities. Your view? We see India as a relative bright spot, given its limited exposure to the external trade shocks affecting other economies. Goods exports to the US account for less than 5 per cent of
