India continues to be the “shining part” of an otherwise weaker emerging market, according to Bank of America Securities' Sanjay Mookim.
India and Indonesia are the only larger countries among the emerging markets that still offer favourable demographics on global basis, while China's performance continues to worsen, Mookim, India equity strategist at BofA, previously known as Bank of America Merrill Lynch, told BloombergQuint in a conversation.
India is not going to witness any major macro events in the near term, and will continue to move in line with the trends impacting the emerging markets, Mookim said.
Patience Is The Key
Mookim said the investors should wait for growth recovery in India.
“If you believe the growth is coming back, then you need to look into the broader market,” he said, adding the focus should be more bottom up and on individual stocks. “The question is of the timing.”
Any weakness becomes an opportunity, if you are a medium term or patient investor.Sanjay Mookim, India Equity Strategist, Bank of America Securities
While it is difficult to deliver growth at this time, Mookim said, investors should not worry about the macro weakness and focus on attractive companies to “catch the turnaround”.
Key Highlights
- Good returns in India should not deter investors from paying higher tax.
- Market is currently devoid of ideas and conviction.
- Expects a 14 percent year-over-year decline in portfolio.
- Expects first and second quarter to be under pressure.
- Festival season can revive growth in consumer sector.
- Sees no trend in consumption weakness.
- India has not structurally slowed down; hopeful that growth momentum will improve.
- Expects volume growth to stabilise for consumer and auto space.
Watch the full interview here:
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