Macroeconomics in India are going in the right direction and investors who choose to stay long-term in the market may do well, according to Luis Oganes, global head of currencies, emerging markets and commodities research at JPMorgan.
Talking to NDTV Profit, Oganes said that Indian assets have done well and they have the potential to continue this momentum.
“Indian assets have done well. Can they continue to do that? Yes, I think they can. But I am not going to go against someone who says that Indian markets are expensive and have rallied a lot to take profits,” he added.
Oganes added that there are not many options for investors who would decide to exit the Indian market.
“The opportunities are not that plentiful, to be honest. Ahead of the US elections, that can alter the playing field, it is a difficult moment to make big investment decisions,” he said.
“The macroeconomics in India is going in the right direction and those investors who choose to stay long term will not do badly,” Oganes said.
He stressed that India is in a better place macroeconomically as compared to a few years ago.
“It has the largest population on the planet but does not have the demographic challenges like other places including China or developed market economies. From that perspective, it is a lot of promise and optimism,” he said.
India is projected to double its gross domestic product to $7 trillion by March 2031 and become the third largest in the world, according to S&P Global Market Intelligence projections.
Emerging market economies like India will also see more capital inflows incoming in the future, with a semi-possible US recession and China deceleration, he claimed.
Oganes said the US will see a soft landing rather than a recession.
“The Fed cutting rates will allow emerging markets central banks to do the same. With the Fed moving, that's a green light for central banks across the world including India to pursue easing,” he said.
The US not going into recession means there is support for global wealth, but China's deceleration can be an issue for emerging markets, Oganes added.
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