Growing retail investor base drives Indian firms with global ops to list on domestic bourses: Expert

Singapore, Jan 20 (PTI) An increasing number of Indian companies with strong overseas operations are choosing to domicile and list in India, attracted by deeper local market appreciation, strong consumption narratives, and a growing retail investor base, a member of Singapore-based asset managers' body IMAS said on Tuesday.

Dhanajay Phadnis, a member of the Investment Management Association of Singapore (IMAS), said that in 2025, India witnessed a significant supply of equities, with a large number of IPOs (initial public offerings) and private equity-backed companies reducing stakes.

"Trading volumes are now largely driven by local investors rather than foreign flows, reinforcing the depth and resilience of India's capital markets. This trend is expected to continue and underpins longer-term confidence in India's growth story," Phadnis said at a briefing on the 2026 IMAS Investment Managers' Outlook Survey released on Tuesday.

The Singapore-based fund manager also pointed out that Indian equities were relatively expensive compared to regional peers over the past year. "In contrast, markets such as China and South Korea were trading at more attractive valuations." However, the survey results show that investor views remain flexible. Should valuations adjust or earnings momentum improve, investors are likely to reassess their positioning. "This explains why India appears in the survey outcomes, cited by 13 per cent of respondents as a potential outperformer and 12 per cent as a potential underperformer, reflecting a genuinely balanced view," he said.

Overall, Japan and China were identified as the most promising markets, followed by India, Singapore, and Taiwan.

Also, Singapore-based fund managers anticipate heightened geopolitical risks and market volatility in 2026, according to the Outlook Survey.

While perspectives on global inflation remain nuanced, 69 per cent of respondents expect the US Federal Reserve to implement rate cuts exceeding 0.5 per cent by year-end, signalling a trend towards monetary easing despite macroeconomic uncertainties.

Besides, 60 per cent of respondents express concern that the independence of major central banks may erode in 2026, reflecting anxieties over political encroachment on monetary policy, said IMAS in its 11th edition of the annual survey, which gathered insights from C-suite professionals across 63 IMAS member firms.

These participants, including Singapore-based fund managers and asset owners, collectively oversee more than USD 35 trillion in global assets. The survey explores how firms are navigating shifting macroeconomic conditions, geopolitical frictions, and structural industry transitions while identifying the core themes poised to drive capital allocation.

"The survey results demonstrate that fund managers are successfully adapting to sustained uncertainty, identifying high-conviction opportunities in Asia even as geopolitical risks escalate," said Jenny Sofian, Chairman of IMAS, which was founded in September 1997 and now has over 160 members. PTI GS HVA