Standard Chartered Bank highlights India’s equity market as core investment with positive outlook

Standard Chartered Bank identifies India's equity market as a central component within its investment portfolio. It also holds a positive stance on global equities, attributing it to expectations of a soft landing and potential rate cuts.

In an interview with CNBC-TV18, Fook Hien Yap, Senior Investment Strategist at Standard Chartered Bank, emphasised the significance of India's equity market as a key element in the bank's investment portfolio. Yap expressed optimism, predicting mid-teens returns for India.

He added that India's equities have consistently shown strong performance, with anticipated earnings growth in the mid-teens for the current and upcoming years. He highlighted the potential support from pre-election spending and the fact that investor holdings in Indian equities while rising, remain comparatively lower than in previous years.

He stated, "All positive factors for India will continue to support its equities. It is a core holding for us, especially in the medium-term outlook."

When questioned about India's position in the bank's pecking order, he revealed that India has been a core holding for some time. However, within Asia ex-Japan, the current preference is for Korea.

Meanwhile, South Korea is anticipated to encounter several factors contributing to potential inflationary pressures in the initial months of 2024. A surge in export growth, particularly in semiconductors and automobiles, is foreseen, and the government aims to allocate three-fourths of its budget during the first half of the year.

For the entire interview, watch the accompanying video.