Goldman Sachs sees investment opportunities in S. Korea, India

Goldman Sachs Asset Management is optimistic about investment opportunities in South Korea and India following the recent market downturn.

Hiren Dasani, co-head of emerging markets equity, is particularly bullish on South Korean shares and AI-related stocks in the region.

He also sees potential in Indian companies involved in auto ancillaries, chemicals, and power equipment manufacturing.

Dasani believes that the AI theme still has room for growth despite the recent market volatility.

He emphasised the importance of focusing on long-term fundamentals rather than short-term fluctuations. The recent selloff has moderated the AI rally, but Dasani remains positive about the sector’s earnings potential.

South Korea’s efforts to enhance corporate governance and increase shareholder returns at listed companies contribute to the appeal of the country’s stocks. These actions are anticipated to result in improved valuations, according to Dasani.

Following Monday’s market decline that caused a nearly nine per cent drop in the benchmark index, the Kospi rose over five per cent in the subsequent two sessions.

Attribution: Bloomberg