BlackRock, the world's largest asset manager, has expressed a positive outlook on India's market prospects, citing a recent valuation reset and easing trade tensions with the United States. Ben Powell, BlackRock's Chief Middle East & APAC Investment Strategist, shared insights on the factors influencing India's market performance and the firm's investment stance.

Market Underperformance and Recovery

Powell attributed India's recent market underperformance to external factors rather than domestic weaknesses. He highlighted two key pressures that appear to be easing:

1. The AI boom benefiting other Asian markets more than India
2. US-India trade tensions

Valuation Reset and Market Position

India's market has undergone a significant transformation:

• Valuations have reset after trading at a premium to emerging markets
• India's market capitalization is now equivalent to that of the UK and Germany combined
• The country remains structurally under-owned globally

BlackRock's Investment Stance

BlackRock maintains an overweight position on India for the next 6-12 months, citing several factors:

Bond Market Outlook

BlackRock also expressed a constructive view on Indian local currency bonds, citing:

• Favorable inflation dynamics
• Attractive real yields

Shift in Investment Strategies

Powell noted a shift from passive to active investing strategies, emphasizing the need for selectivity in the current market environment. This approach is driven by:

• Geopolitical fragmentation
• Revolutionary technology advancements

Potential US-India Trade Agreement

Powell mentioned that President Trump has hinted at a potential trade agreement with India, which could further improve market sentiment and economic ties between the two nations.

In conclusion, BlackRock's bullish stance on India reflects a combination of improving domestic factors and easing external pressures. As the global investment landscape evolves, India's reset valuations and strategic importance may position it as an attractive market for investors in the coming months.

BlackRock, one of the world's largest asset management firms, has reportedly been impacted by a fraud scheme in its private credit division, resulting in losses exceeding $500 million. The alleged fraud, attributed to Indian businessman Bankim Brahmbhatt through his telecom-financing firm Carriox Capital, has raised concerns in the financial industry.

The Alleged Fraud Scheme

The scheme reportedly involved:

• Presentation of fabricated assets as collateral for loans
• Creation of fake contracts and invoices, claiming to finance receivables for major telecom companies
• Use of fraudulent email domains mimicking telecom giants to send confirmations to lenders

BlackRock's Involvement

BlackRock's reported exposure to the alleged fraud:

Other Parties Reportedly Involved

• BNP Paribas: Reportedly funded 50% of the loans to Carriox and its affiliates
• Major telecom companies whose identities were allegedly exploited:
  • T-Mobile
  • Telstra
  • Telecom Italia Sparkle

Unraveling of the Alleged Fraud

The scheme reportedly began to unravel when an HPS employee discovered irregularities with email addresses linked to Carriox customers. This discovery reportedly led to:

• August 2025: Carriox Capital filing for bankruptcy
• Shortly after: Brahmbhatt declaring personal bankruptcy

Legal Action

In response to the alleged fraud, BlackRock and other affected lenders have reportedly taken legal action:

• A lawsuit has reportedly been filed seeking to recover the $500.00 million lost in the alleged scheme

This incident highlights the potential risks in private credit markets and the sophisticated nature of financial fraud allegations. It underscores the importance of rigorous due diligence and robust verification processes in lending practices, even for established financial institutions.

The case may have implications for the private credit industry, potentially leading to enhanced scrutiny and tighter controls in lending procedures. As the legal proceedings unfold, the financial sector will likely monitor the impact on BlackRock's operations and the broader private credit landscape.