“India is in very good shape right now,” Gary Schlossberg, global strategist at Wells Fargo Investment Institute, said in an interview with CNBC-TV18.
“By all accounts, I would expect this to continue. Rates could go up, it could create a headwind in the market but for now at least the fundamentals which are more focused than the techniques seem to be in favor of India. Profit growth is strong, the economy is doing well, capital spending, productivity is holding up pretty well. The economy is less sensitive to trade than others, so to that extent there is no uncertainty about the global environment, India is relatively well isolated there, ”he said.
Regarding the US stock markets, he noted that for now the trend is clearly upward given the picture of earnings. When T3FY22’s earnings run out, the market may focus on other things like higher inflation, higher interest rates, and rising commodity prices.
“However, we expect profit growth in the US to continue to hold until early next year. Now at least earnings will continue to provide good support to the equity market, ”he said.
According to him, the bond market is following the Fed’s lead.
“The 10-year bond yield started its run roughly in line with the Fed’s Sept. 22 FOMC announcement, which increased the odds of some downside. Between that and the high inflation rates that we are currently seeing, this explains the sustained evolution of the 10-year yield, ”he explained.
For the full interview, watch the accompanying video.
(Edited by : Dipikka Gosh)
First publication: STI