Oil surged 6% last week, lifting the benchmark to $115 per barrel—its highest level in months, underscoring how geopolitical jitters keep energy demand in focus.
Ben Powell, BlackRock’s Chief APAC & Middle East Investment Strategist, said India’s long‑term case remains intact amid global headwinds. He highlighted rising household savings flowing into equities and bonds, creating a domestic capital pool that can sustain growth even as foreign capital cycles.
Powell noted that once the uncertainty around the US midterm elections eases, foreign investor flows should return. He added that AI‑related regulatory risk, especially around data‑centre expansion, is a key policy focus that could influence investment sentiment.
West Asia tensions and the looming US midterms add volatility to global markets. Powell warned that the sector’s sensitivity to policy outcomes could keep oil prices elevated and market sentiment cautious.
Looking ahead, BlackRock expects the resumption of foreign flows to lift its India allocation, but cautions that election outcomes and AI regulation will shape the pace. Traders should monitor the US midterm results and any policy shifts that could affect data‑centre investment.