A portfolio manager predicts that Indian stocks will thrive during the Trump 2.0 era.

• Kunal Desai of GIB Asset Management stated that India's geopolitical positioning appeared advantageous with President-elect Donald Trump's return to office.
• Desai stated that India is likely one of the most appealing, tolerant, and expandable investment prospects worldwide, according to an interview with CNBC's Silvia Amaro.
• Investment opportunities in power cable and wiring companies were deemed most attractive, as stated by him.

According to Kunal Desai of GIB Asset Management, investors should focus on Indian firms with potential to become future "blue chip companies."

The portfolio manager stated that India's geopolitical positioning is advantageous in the current Trump 2.0 era as investors evaluate the country's potential to capitalize on a possible trade conflict between China and the U.S.

When President-elect Donald Trump assumes office, he intends to impose significant tariffs on goods originating from China. According to analysts, this move may benefit India, as companies may shift their manufacturing operations to the South Asian nation in order to avoid the tariffs.

Desai stated that India is likely one of the most appealing, tolerant, and expandable investment prospects worldwide, according to an interview with CNBC's Silvia Amaro.

Desai mentioned geopolitics, monetary sovereignty, improved return on equity, and increased private investment as reasons to invest.

Some Indian manufacturing companies have benefited greatly from Prime Minister Narendra Modi's "Make in India" initiative, according to analysts.

Cables, power cables, and wires are among the most appealing areas for Desai, who sees their role in urbanization and infrastructure projects in India as significant.

These businesses are not only viewing India as a "key market," but are also aiming to grow and begin exporting.

According to Desai, due to the challenges faced by Chinese companies in exports, Indian companies are capitalizing on the opportunity as customers adopt a dual source strategy for their supply chain.

Upbeat on China stocks

Although investor concerns about Trump's "hawkish Chinese policies" on his return to office have caused worry, the portfolio manager stated that the anticipated increase in U.S.-China tensions, along with the expected 2025 GDP growth target of around 5% and fiscal stimulus from Beijing, could compel Chinese policymakers to revive domestic economic optimism.

Businesses with strong brand power, competitive advantages, and high profitability are most likely to benefit from a potential consumer rebound in the future.

This presents a valuable chance for companies whose valuations have decreased, allowing them to improve their outlook for the future, according to him, with the potential for significant gains.

One of China's largest fast-food chains is Yum China, which encompasses KFC, Taco Bell, and Pizza Hut.

Desai anticipates that the Chinese e-commerce giant, one of the top 10 holdings in his portfolio, will benefit from a potential consumer rebound.

In the next 18 months, China will experience a "really powerful dividend, buyback, capital return story," as seen in the U.S. over the past four or five years.