More money will move from India to China, says Adrian Mowat
In an interview with CNBC-TV18, he noted that China's economy is likely to attract capital funding from India as the country's economy reopens after the pandemic. This could lead to increased investment in Chinese stocks, which could drive the country's stock market higher
Indian equity market was the big outperformer in 2022 as it was one of the fastest-growing major economies. Inflation was rising but it was not out of trend for India realistically. However, if the Chinese economy continues to improve, as it moves out of the zero-COVID policy, then that is going to attract capital and it may have an outflow problem for India, according to Adrian Mowat, Emerging Equity Markets Strategist.
In an interview with CNBC-TV18, he noted that China's economy is likely to attract capital funding from India as the country's economy reopens after the pandemic. This could lead to increased investment in Chinese stocks, which could drive the country's stock market higher.
“The fact that the Chinese started travelling again, is also very good for the ASEAN (Association of Southeast Asian Nations) region. It's also somewhat positive for commodities as well. And these sorts of trends are going to attract capital within the emerging market (EM) space and partly that is going to be funded by money coming out of India,” he added.
“It is not that India is necessarily deteriorating. It's just other countries, markets around it are offering improved opportunities that were not present there in 2022,” Mowat explained.
Like Mark Mobius, Founder of Mobius Capital Partners, Mowat too is looking to add positions in Taiwan and South Korea for the same reason.
"Both countries are strong economies and are well-positioned to benefit from the ongoing economic recovery," he said.
Overall, Mowat's comments provide valuable insights into the current state of the emerging markets. While China remains the dominant player, there are opportunities for investors in other markets such as Taiwan, Korea, and India. With the global economy continuing to recover, these emerging markets are likely to be key drivers of growth in the years ahead.
For more details, watch the accompanying video
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Election 2024: What rural Delhi wants
May 16, 2024 10:10 PM
Over 50 onion farmers detained in Nashik ahead of PM Modi's visit
May 16, 2024 11:14 AM
Why Google CEO is cautiously optimistic about the election year
May 16, 2024 9:51 AM
Mark Mobius reveals how markets will react if NDA wins 400+ Lok Sabha seats
May 15, 2024 8:09 PM