Arvind Sanger of Geosphere Capital believes the Indian market will be slightly choppy in the short term due to China reopening but broadly, India will do fine.
"I think that China reopening is going to be in my opinion the big story of 2023 where India is not the centre of the universe and in that circumstance, I think India will do fine," Sanger said in an interview with ET Now.
"We will see a big rebound in commodities as China gets past its current COVID wave. Therefore yes Indian market is going to be a little choppy in the short term but it is still what we like in the medium term. This year we just want to be a little patient," he added.
Sanger also said that India would see an outflow of foreign funds in the short term due to the China factor.
"India was a big beneficiary of money moving out of China in 2022 and India is going to on a relative basis suffer as money moves into China. In the short term, yes fund flows are going to be somewhat unfavourable to India relative to China," Sanger told ET Now.
As per media reports, mainland China has opened sea and land crossings with Hong Kong and ended a requirement for incoming travellers to quarantine, dismantling a final pillar of a zero-Covid policy.
Sanger believes the China reopening may also be an inflationary factor which may cause a delay in the pause on rate hikes.
Disclaimer: This article is based on an ET Now interview. The views and recommendations given in this article are those of the analyst. These do not represent the views of MintGenie.