Fab 7 Isn’t a Bubble: Ansid Capital’s Anurag Singh on Big Tech and Indian Market Outlook
Anurag Singh of Ansid Capital states the AI-driven 'Fab 7' tech rally is not a bubble, highlighting strong fundamentals and competitive moats in big tech companies. However, he points out bubble-like froth in smaller speculative sectors. Singh advises that Indian markets need about a year of consolidation after the recent sharp rally, which will enhance long-term returns and investor resilience.
Anurag Singh, Managing Partner at Ansid Capital, emphasizes that the AI-led rally in major technology firms, referred to as the 'Fab 7' (including Nvidia, Tesla, Apple, Google, Meta, among others), is not a bubble despite some debatable valuations. He notes these companies have strong competitive advantages and sustainable AI investments funded from their own balance sheets. Singh contrasts this with smaller speculative stocks such as quantum computing or rare earth companies, which have exhibited extreme price surges indicative of bubbles. Regarding the Indian market, Singh acknowledges the structural growth story remains intact but valuations are demanding. He recommends caution for the next year as the market undergoes a cooling-off and consolidation phase, which he believes will ultimately strengthen long-term returns and improve investor resilience. He favors sectors like healthcare and private banks within India while signaling limited attractive returns elsewhere at present. Singh also remarks that foreign institutional investors’ activity, including large inflows by DIIs and sales by FIIs, is a key dynamic underpinning market movements. Overall, Singh portrays a nuanced view balancing optimism for dominant tech and structural growth with prudent caution for speculative segments and the Indian equities environment.
