Tantallon India Fund Report, July 2026

The Tantallon India Fund closed down -1.36% in July with markets trading in a hyper-volatile band, reflecting the aggressive momentum unwind in leveraged tech positions, amplified by surging US Treasury yields, and unfortunately, the fragile truce in the Middle East falling apart. That said, the Indian equity markets did out-perform, buoyed by the sharp rotation into the laggard large cap financials and IT services stocks. We would specifically note the Reserve Bank of India’s successful efforts to stabilize the rupee, a resilient domestic economy, sustained private sector capex, and a strong earnings up-cycle. Our conviction stands that the market is poised to re-rate on the back of renewed policy momentum, sustained earnings growth exceeding current muted expectations, attractive valuations, improving domestic liquidity and the resilient bid by domestic investors.