A hedge fund backed by KKR & Co is betting on Indian stocks in the belief that inflation has peaked, according to a report by Bloomberg.
The report cites Vaibhav Sanghavi, co-chief executive officer of Mumbai-based long-short investor Avendus Capital Public Markets Alternate Strategies, as revealing that the firm is big on consumer, let by auto and industrials – market segments the firm believes are set to benefit when prices fall.
While there may be more volatility to come, Sanghavi is expecting ‘huge inflows’ once inflation falls, most probably from September onwards. Already the country’s inflation rate eased to 7.04 per cent in May, after hitting an eight year high in April.
