Indian equity market to move higher on supportive global backdrop: Mirae’s Rahul Chadha

Mirae Asset Global Investments expects the Indian market to move higher as the global backdrop remains supportive, said Rahul Chadha, chief investment officer of Mirae Asset Global Investments.

“It is highly likely that we trend higher from here because the global backdrop is very strong from an economic recovery perspective and key economic regions like the US, Europe bouncing back well and it’s a reflationary trade and with that reflationary trade the Indian market benefits,” Chadha said in an interview with CNBC-TV18.

He further observed that markets been fairly resilient in light of the second wave and hopes is that this wave peaks out in the next 3-4 weeks. Once that plays out then we can see interest coming back to domestic cyclical, he added.

On PSUs, Chadha said, “We like the names in gas space etc., so one would look at quality public sector undertakings (PSUs) and with inflation coming back anybody who has got assets on-ground benefits because the operating leverage is high over there and PSUs are kind of under-owned part of the market so they can do well in coming months.”

For the entire interview, watch the video.