Business2 min
Rich Handler says Indian stocks look cheap by global standards
The Jefferies chief executive argues the market correction is a healthy breather, not a warning sign, and that simpler capital gains tax rules could lure more foreign money.
Indian stocks still look reasonably priced, even after a recent market slide, according to Rich Handler, chief executive of Jefferies Group. He says some investors in other markets would happily trade places with India when it comes to valuations.
Handler also thinks Indians are being too hard on themselves. He points to the country's economic growth, young population, work ethic and skilled workforce as strengths that much of the world admires. In an interview with the Economic Times, he and two Jefferies India leaders, Mahesh Nandurkar and Ashish Jhaveri, covered the correction, the tax debate, India's role in artificial intelligence and fears of an AI bubble.
Why are foreign funds leaving? Handler blames a crowded trade more than a broken economy. Over the past few years, AI has pulled a huge share of global investment toward its own companies, and money has flowed away from India and from non-tech businesses in the United States and elsewhere. He argues the market is now taking a breather and that investors are rethinking which AI projects are worth funding, especially capital-heavy ones. Rising yields on some US AI company debt show that lenders are becoming more cautious too.
On the tax question, Handler says a cleaner long-term capital gains regime would make India more appealing to overseas investors. Rules are never going away, he concedes, but simplification, greater transparency and less tax friction all help draw in capital. He sees these as practical, constructive steps rather than a cure-all for India's market challenges.
He is also upbeat about India's role in AI. He sees real opportunities in data centres and AI-related businesses inside the country. In his view, the outflows are a sign of global money concentrating in one sector, not a verdict on India itself.
As for an AI bubble, Handler does not see cause for panic. Fast-growing industries benefit from checks on how much money pours in, he says, and a pause in the rush could be good for long-term market health. He expects AI to keep advancing, but with more scrutiny on spending. For readers tracking India's market swings, his message is simple: the sell-off looks more like a reset than a rupture.
Read the full interview at the original Economic Times report.
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