The decent earnings growth outlook, positive economic data and capital inflows are expected to support the equity market rally, said emerging market equity strategist Adrian Mowat. He said there is an expectation of a melt-up in equity markets, where bond markets do not look like an attractive place to be in.
However, there are some of the negative points that investors should keep an eye on. With regards to India, the oil market could prove to be tight in the summer months, he said. “The US is removing waivers on importing oil from Iran, also refineries are ramping up production ahead of the driving season,” he said, adding that DXY has rallied quite strongly.
The dynamics for India within the emerging market pool is that it could be neutral to a bit of an underperformer because of these headwinds in terms of a stronger dollar and higher oil price, said Mowat. Read More
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