Indian market meets Macquarie's 3-point EM investing checklist
Viktor Shvets, MD - Asian Strategy, Macquarie Securities
Feb 10, 2017 | Source: CNBC-TV18
We like countries that are predominantly more local than global, countries that have inbuilt liquidity, and a relatively low degree of external vulnerabilities.
The performance of Indian equity markets will greatly depend on the policies of the new Donald Trump administration in the US and how the world reacts to it.
Indian companies do not like a rising dollar and a high degree of dislocation where there is contraction of global equity flows and volatile shifts in commodity prices.
The rupee has appreciated more than 1 percent so far this year, with most of those gains coming toward the end of January on hopes for fiscal stimulus in the Union Budget.
The ‚most radical administration in modern US history‛ seemed to think that trade deficit was a bad thing - that it is essentially the difference between savings and investments. He also said that the Trump administration was ignoring the fact the US dollar underpins the entire global economy.
Shvets also said that India will do better once reflationary trade recedes..