# India's Market Shift

> Amundi's Vincent Mortier says India's equity slump is temporary as valuations improve.
- Title: India's Market Shift · The Economic Times | Shortify
- Summary: Amundi's Vincent Mortier says India's equity slump is temporary as valuations improve. Amundi's Vincent Mortier states India's two-year equity weakness is a…
- Keywords: vincent mortier, amundi, indian equities, us treasury yields, capital gains tax, indian rupee, 10-year yield, real rates, money, business, India's, Market
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/expert-view/india-has-gone-from-half-full-to-half-empty-thats-excessive-vincent-mortier/articleshow/134880195.cms
- Author: Nishanth Vasudevan
- Published: 2026-10-12T01:20:00+00:00
- Read time: 2 min
- Topics: vincent mortier, amundi, indian equities, us treasury yields, capital gains tax, indian rupee, 10-year yield, real rates, money, business
## Market Shift
Vincent Mortier, group chief investment officer of Amundi, says India's two-year equity weakness is a temporary pause as valuations are back to decent levels.

> We went from half-full to half-empty. That's excessive.
## Investment Outlook
Mortier oversees 2.3 trillion of assets worldwide and advises clients to buy Indian equities for diversification.
## Narrative Shift
India used to be fashionable due to its prospects and middle class, but now faces energy issues, tariffs, and AI concerns.
## Rupee Stability
The Indian rupee remains a question mark with high hedging costs, but fundamentals suggest it won't fall further.
## Capital Gains Tax
Foreign investors find India's capital gains tax regime complex, with rules difficult to compute for custodians.
## 10-Year Yield
India's 10-year yield is almost 7.3%, with inflation around 4.5%, meaning real rates are nearly 3%.
## AI Market Concerns
The market is too optimistic, concentrated, and short-term, rewarding all companies despite uneven outcomes.
## US Treasury Yields
The US 10-year yield is at 5.25%, with two views: strong economy or excessive financing needs.
## US Debt Concerns
The US government has $40 trillion of debt and may need quantitative easing to fund it.
## French Bonds
French bond spreads to Germany touched 152 basis points, with elections in May next year.
## Asian Markets
Indonesia has strong fundamentals, China offers opportunities at attractive valuations, Japan is expensive and volatile.
## Gold as Hedge
Gold provides a hedge against currency debasement but not against geopolitics or inflation.
## Investor Advice
Build a core portfolio generating quality income from government bonds or stable, high-dividend equities.
## Market Rebalancing
Asset allocations are unbalanced; AI repricing and market corrections may trigger rebalancing.
## Long-Term Strategy
Real rates of 3% in India are a good deal; 10-year yield may decline to 7% or 6% before equities take over.
## What Happens Next
Foreign investors may return to India as valuations improve and catalysts like geopolitical stability emerge.
## Key takeaway

Amundi's Vincent Mortier states India's two-year equity weakness is a temporary pause due to improved valuations, urging investors to buy Indian stocks for diversification.