Marc Franklin, Deputy Head of Multi Asset Solutions, Asia at Manulife, said the market has gone through “a time correction over the last six to 12 months” and underperformed other regions. He explained that valuations were stretched a year ago, and the current phase represents “a digestion of those strong gains” along with a shift in market ownership.
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“The growth story is intact,” Franklin said, but added that Manulife is keeping a neutral stance for now due to “an absence of immediate catalysts for the Indian equity market.”Manulife’s tactical stance is based on four factors – macroeconomics, sentiment, fundamentals and technicals. Franklin said economic data remains mixed, foreign investor sentiment is dampened, valuations are mid-range, and the market is still rangebound. “Across those four pillars, our conclusion is, for the time being India remains neutral,” he said.
On gold, Manulife maintains a constructive view. Franklin said there has been “a reappraisal of gold in terms of its place in portfolios,” not only among retail investors but also central banks and institutions. He pointed to structural changes such as central banks diversifying away from US Treasuries and fiscal policies that have expanded deficits.
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Meanwhile, Asia has drawn more investor attention this year. Franklin said flows into the region have been driven by “selective stories,” such as Korea’s political clarity, Taiwan’s semiconductor and AI exposure, and discounted valuations in Hong Kong and China.
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