Tantallon India Fund Report, September 2026

The Tantallon India Fund closed down -4.24% in September with market sentiment held hostage to the escalation in the Iran-US conflict, and crude spending much of the month above $100/barrel, exacerbated by the hawkish US Fed pivot and US Treasury yields trading up to levels last seen in 2002, an incipient debt crisis in Europe, and signs of AI-momentum-and-yen-carry trades being unwound. At this point, there seems to be no panacea for higher interest rates and elevated crude oil prices. We have stayed focused on first principles, the underlying resilience in India’s domestic economy, the revival in the domestic investment cycle, the buoyancy in tax collections, the RBI-engineered stability in reserves and an ‘orderly’ rupee, and importantly, corporate India continuing to surprise on the upside with strong earnings and cash flow growth. With apologies to Fuller and Dylan, it’s darkest before
dawn.