Risky assets might rally over the next few weeks, says this market watcher
Speaking in an interview with CNBC-TV18, Rajat Bhattacharya, Senior Investment Strategist at Standard Chartered said India is likely to see a rally in risk assets over the next few weeks.
Indian equity benchmarks BSE Sensex and NSE Nifty50 started the week with mild gains tracking largely positive moves across global markets after US inflation data released last week and backed by hopes of a moderation in COVID-era hikes in interest rates.
Speaking in an interview with CNBC-TV18, Rajat Bhattacharya, Senior Investment Strategist at Standard Chartered said India is likely to see a rally in risk assets over the next few weeks.
“In the next few weeks, you are probably going to see a possible continuation of this rally that we are seeing in risk assets, especially growth stocks, which were battered down by high rates. But over the longer term, the way to position is the emerging markets, Asia ex-Japan stocks are really appealing,” he said.
Also Read: Investors need to trim down equity allocation given high interest rate scenario: Moneyfront
The US Fed is likely to go for a 50 basis rate hike in December 2022, according to the firm.
“They (Fed speakers) caution that this is not the pause in Fed rates. This is a slowing down, which Chair Powell also signalled to us in the last meeting, that he actually sees a possibility of a slowdown in the rate hikes. So we are looking at a 50 bps rate hike in December,” he Bhattacharya.
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