Westminster AMC kept its direct India exposure at 5‑6% after noting that valuations still appear too high. The firm said commodity price spikes, energy costs and a weaker rupee remain key risks.
Schiessl warned that India’s vulnerability to rising oil prices—and a depreciating rupee—could pressure returns, especially as a stronger U.S. dollar adds headwinds for emerging markets. He added that the dollar could strengthen further as global uncertainty persists.
The AI wave adds a silver lining, with Indian software and outsourcing firms poised to benefit once they internalise the technology, Schiessl said. Yet the market is not yet at that stage.
Despite sharp rises in global bond yields, Westminster remains broadly neutral on equities, keeping fixed‑income unattractive but eyeing the longer end for potential opportunities. The firm has exposure to commodities and hedge funds to capture volatility, and could step up India allocation if a market sell‑off materialises.
Looking ahead, Westminster will monitor valuation shifts and may raise its India stake if the market corrects, but it maintains a balanced emerging‑market focus for now.