BlackRock Inc  will plan to use any weakness in the rupee to add to a modest long position while GW&K Investment Management LLC is boosting its stock holdings following a recent selloff. Invesco Hong Kong Ltd. and Lombard Odier favor debt linked to India’s sustainable investing and renewable energy sectors.

Portfolio managers are attempting to navigate India’s pandemic by focusing on the nation’s long-term growth prospects, with consumption expected to drive a recovery once the virus crisis passes. While the outbreak has fueled the world’s worst health crisis, limited stock outflows and a rebound in the currency attest to investors’ confidence in the South Asian economy.

Economic growth will be tempered by the second wave in 2021, but growth will be strong this year and the long-term outlook is quite positive,” said Tom Masi and Nuno Fernandes, co-portfolio managers at GW&K Investment Management. “Short-term investors will be compelled to step aside, but long-term oriented investors understand the opportunity.”

India’s benchmark S&P BSE Sensex stock index has declined about 4% from a mid-February peak, outperforming an MSCI Asia Pacific gauge which is down more than 7 per cent. Global funds pulled $1.5 billion from the nation’s equities in April, versus $8.4 billion when the pandemic raged in March 2020.

Amundi SA and Principal Global Investors LLC are both overweight on Indian equities. India’s stock market “possesses several structural growth opportunities that we do not expect to be dramatically altered by the current virus surge,” said Jeff Kilkenny, portfolio manager at Principal Global Equities. Infrastructure, personal mobility and insurance are among the attractive sectors, he added.