Sharing his latest commentary with us, Chetan Sehgal, Lead Portfolio Manager of Templeton Emerging Markets Investment Trust (TEMIT), reports stabilising prospects across emerging markets.
In his analysis below, he highlights how improved trade flows, targeted fiscal and monetary policies, and political moves towards market-friendly reforms are boosting investor confidence. Select sectors are seeing earnings revisions upward, reinforcing optimism.
The artificial intelligence growth story remains strong, and memory-related earnings concerns are easing. China’s technology sector benefits from a push for self-sufficiency, while India’s recent tax reforms support domestic consumption.
Sehgal notes that valuations still demand discipline. TEMIT has added positions selectively, monitoring geopolitical tensions and government policies closely. The trust combines a bottom-up approach with structural insights to uncover opportunities in overlooked and under-researched companies.
Sharing his monthly commentary, Chetan Sehgal, Lead Portfolio Manager of Templeton Emerging Markets Investment Trust (TEMIT) said:
“Emerging Markets (EMs) have seen a stabilisation in their prospects. More trade deals are emerging, and countries are adopting either one or a combination of fiscal and monetary policies to buffer any negative impact of external uncertainties. Investor sentiment is also improving, driven by lower US interest-rate expectations and political shifts towards more market-friendly policies. At the company level, we are also seeing earnings in certain pockets being revised upwards.
“The artificial intelligence growth story continues to remain strong. While there were some concerns on earnings being revised downwards, especially on the memory side, that concern is incrementally receding. In our view, we think that memory companies will also experience a good year in 2026.
“Growing confidence in China’s technology companies’ ability to innovate, with additional catalysts from China’s self-sufficiency drive in technology, remain key pillars of support. India’s recent simplification in the goods and services tax, resulting in a tax cut, provides a tailwind to domestic consumption. We remain cognisant of valuations; they have been corrected and we have, in turn, added selectively.
“Underpinning our optimism is our well-rounded perspective. We remain cognisant of the key risks in our investment universe. We continue to keep a close watch on geopolitical tensions and government policies. We combine our bottom-up focus with these structural trends to identify opportunities in this sea of overlooked and under-researched companies.”
