homemarket NewsNifty, Sensex driven by strong fundamentals but Kospi, Shanghai valuations more attractive
Nifty, Sensex driven by strong fundamentals but Kospi, Shanghai valuations more attractive
Suresh Tantia, Senior Investment Strategist at Credit Suisse, in an interview with CNBC-TV18, hailed the strong fundamentals behind the strength seen in the Indian market but also said that valuations of some of its peers look more attractive.
The Indian markets have been on a strong run with the Nifty and Sensex, the benchmark indices, rallying over 4.5 percent in the past month. Suresh Tantia, Senior Investment Strategist at Credit Suisse, in an interview with CNBC-TV18, hailed the strong fundamentals behind the strength seen in the Indian market but also said that valuations of some of its peers look more attractive.
“India has been absolutely amazing, given the strong performance this year. Despite the 20 percent plus selloff that we have seen in emerging markets, year to date. I think it's driven by the fundamental strength of the Indian economy, more domestic-driven economy and the recovery from COVID,” he said.
It's noteworthy that the Nifty50 is up 2.3 percent in the same period. Therefore, Tantia believes that the valuations are more attractive in markets like Korea (Kospi), Taiwan, China (Shanghai) and some other south Asian markets.
“From an absolute perspective, India can do well given the strong recovery. But from a relative perspective, I see better value in the rest of the Asian markets,” he said.
Thus, the firm recommends buying on dips if there is a 5-10 percent correction in the Indian market due to the current volatility seen across the globe.
Another global trigger will be the US inflation data which will be reported on Thursday evening. A softer reading will possibly convince the US Federal Reserve to go easy on the rate hikes it has been taking but a steep inflation figure will spell more tightening.
“Today's inflation number will be very important because, in the past few months, markets have been disappointed. Markets were looking for a peak in inflation, but that didn't materialize. In the future, the trend is clear, numbers will be lower. But the focus will be more on the components of inflation,” said , Tantia.
For more details, watch the accompanying video
(Edited by : Abhishek Jha)
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