Foreign capital could rotate to India as AI trade loses steam: Bandhan AMC CIO

India could attract more foreign investment as the global artificial intelligence (AI) trade loses momentum, according to Manish Gunwani, CIO – Equity at Bandhan AMC, which managed assets worth ₹1,693.02 crore as of June 30, 2026.

Gunwani said domestic sectors remain well placed because India's economy has stayed resilient despite global uncertainties. He believes investors who benefited from the AI-led rallies in markets such as the US, Taiwan and South Korea could increasingly look at India as valuations become more attractive.

He added, "India offers a decent risk-reward where valuations are reasonable. The domestic economy is reasonably strong... at some point that rotation should happen where foreign capital comes to India."

Gunwani said real estate remains one of his top domestic bets. He argued that leading developers are trading below their net asset value and could benefit even if information technology (IT) services growth slows, as demand from global capability centres (GCCs) continues.

He also remains constructive on manufacturing over the next few years, supported by policy initiatives and India's long-term export opportunity. However, he cautioned investors against paying excessive valuations for companies producing standard manufactured components.

Gunwani said sectors such as steel products and engineering appear more attractive, while some power equipment companies are trading at valuations that make him uncomfortable.

He said large-cap IT could offer a tactical opportunity despite concerns over AI-led disruption. While he would not be underweight the sector, he prefers large-cap names over mid-cap IT companies because of the valuation gap.

In the new-age technology space, Gunwani remains positive on fintech, consumer technology and capital-market businesses. He said technology-driven companies that improve market penetration and benefit from premium consumption are likely to see stronger long-term growth. Depending on the scheme, such companies account for about 5-6% of Bandhan AMC's portfolios.

Discussing quick commerce, Gunwani said he prefers the market leader over smaller rivals, citing execution and industry economics.

He added that high cash burn among competitors could eventually lead to industry consolidation.

Looking at upcoming initial public offering (IPO) opportunities, Gunwani said asset management companies (AMCs) and stock exchanges remain attractive businesses because of their cash generation, although valuations will determine investment decisions. He was more neutral on telecom, saying the sector generates healthy cash flows but offers limited long-term growth.

For the full interview, watch the accompanying video

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