Indian markets poised to go up a lot, says Julius Baer's Mark Matthews

India's equity markets are poised to go further up from current levels is the word coming in from Mark Matthews of Bank Julius Baer.

In an interview with CNBC-TV18, Matthews said that many emerging markets, including Brazil, Singapore, and Indonesia, are also attracting a lot of foreign capital as investors are looking for alternatives beyond the US.

He expects the emerging markets basket, except for China, to outperform the West over the next one to two years.

While speaking of India, Matthews said that local buying was the biggest factor that kept equities afloat, and it continues to do so through the SIPs. SIP contributions for August stood at Rs 12,693 crore, according to data from the Associations of Mutual Funds in India (AMFI).

"The local buying is still there through the SIPs. Locals realise that there is a virtuous economic cycle in India, and it is the foreigners are starting to come to India," he said. He said India had always traded at a premium to emerging markets.

On the US, Matthews said the country would most likely avoid a recession as multiple data points suggest the economy is in good shape. "In case there is a recession in the US, it will be an extremely mild one," he said.