Goldman Sachs Asset Management is eyeing investment opportunities in South Korea and India despite a recent sharp decline in Asian stock markets. Following Monday’s significant global equities selloff, the firm’s co-head of emerging markets equity, Hiren Dasani, remains optimistic about the potential in these regions.
Dasani expressed a bullish outlook on South Korean equities, particularly highlighting the attractiveness of artificial intelligence (AI)-related stocks, which have seen volatile trading due to their extreme valuations in recent weeks. He emphasized that despite the market turbulence, the broader AI sector remains promising, noting that fundamental trends and earnings in this sector continue to be strong.
South Korea’s recent push to enhance management practices and shareholder returns among listed companies has further increased the appeal of its market. Dasani noted that these reforms are expected to lead to better valuations, contributing to the resilience of the Kospi, which rebounded by over 5% in the two sessions following Monday’s near 9% slide.
In India, Dasani pointed to robust earnings, a lower correlation with global market swings, and a focus on domestic-driven growth as key factors driving his optimism. The country’s $4.8 trillion market benefits from a strong push towards localization and aims to establish itself as a viable alternative to China in manufacturing sectors. This includes companies involved in auto components, chemicals, and power equipment.
The Goldman Sachs India Equity Portfolio, managed by Dasani, includes notable holdings such as auto component maker Samvardhana Motherson International Ltd., wind turbine manufacturer Suzlon Energy Ltd., and textile firm Gokaldas Exports Ltd. As of August 5, the fund held $4.4 billion in assets.
Dasani also highlighted the positive impact of India’s recent federal budget, which emphasized fiscal consolidation and capital expenditure, boosting confidence in policy continuity. The resilience of Indian equities, which fell 2.7% on Monday—its largest drop in two months—compared to the MSCI Asia Pacific Index’s 6% decline, underscores the strength of domestic institutional flows and economic growth in the region.
India’s focus on localization and infrastructure investment is expected to drive long-term growth.
The global AI sector continues to be a key investment theme despite short-term volatility.
South Korea’s stock market reforms are designed to improve corporate governance and investor returns.
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