Expect US Fed tapering to be moved up to November: JPMorgan

JPMorgan sees opportunity in Indian financial stocks, James Sullivan, head of Asia Pacific region (APAC) equity research, told CNBC-TV18.

“We do see opportunity in the financial stocks, it's interesting. Banks are one of the only sectors in India, which are trading at average historical valuations and if the argument is that there is going to be a fiscal thrust into the second half and a pickup in the overall levels of economic activity, inclusive of the potential for a rate cycle as we move farther into the next year, not in the short-term but in the medium-term, it's very conducive for financial sector performance,” he said.

On FOMC, Sullivan said, “The tapering will move into November timeframe; the existing expectation was December, but we do think that will be moved up based on recent FOMC as well as governor comments. The November move is probably the consensus right now. We do see the potential for four 25 bps rate hikes in 2022, which is clearly not built into the treasury curve yet.”