No Major Correction Coming: Sunil Singhania On Markets, IPO Froth, FIIs & His New Flexicap Fund

In this exclusive conversation with Riddhima Bhatnagar of Business Today , Sunil Singhania, Founder of Abakkus Asset Manager , breaks down the global market setup, valuations, sector outlook and why 2026 could mark a shift in global investor positioning. He explains whether bubbles are forming in markets like the US, Japan and China and how the dominance of AI, semiconductors and new-age tech has driven volatility, and why global money may now begin rotating into broader markets including India. Sunil discusses India’s valuation premium and why the current 14–15% premium is reasonable given the country’s demographics, growth outlook and superior corporate RoEs. He also shares his views on whether India can continue to be the global “hope trade” amid a surge in IPOs, how investors should approach richly priced listings, and why select new-age companies could become meaningful long-term wealth creators. He breaks down the recent rupee weakness, the impact of tariffs, the spike in gold and silver imports, and how these factors influence FII flows. Sunil also explains why FII outflows may be bottoming out and why global investors may soon return to Indian equities. The discussion covers his views on gold, the massive wealth effect for Indian households, and the sectors he is bullish on including financial services, niche manufacturing, engineering, pharma and select metals and chemicals. Sunil also speaks about the launch of Abakkus Mutual Fund’s first Flexicap Fund, what differentiates it from existing products, the philosophy behind a true Flexicap approach, and the broader roadmap for the fund house. Finally, he shares his outlook on whether investors should stay in cash, deploy now, or tilt towards large caps, along with the kind of returns investors can realistically expect over the next three to five years.