India was always doing well and may be among the best large markets in the coming few years, said Anil Sarin, ED & CIO, Centrum Wealth in an interview with ET Now.
"India was always doing well, India is expected to do amongst the best in the larger markets in the coming few years. So India was not a problem; the problem was with the US, specifically the stance of the US Federal Reserve," Sarin told ET Now.
Sarin said that the market participants in the US seem to have factored in inflation and they think that the rate hikes will stop in case of a recession.
"At this point in time, in the US, at least the way the market participants think, it is more of a recession which is being factored in and if there is a recession, then the interest rates would not be allowed to go up at the same pace. Rather at some stage, there would be a stoppage to the interest rate hike, that is one aspect," said Sarin.
Sarin also pointed out that the return of FPIs is a positive for the market.
"We have to appreciate that after so many weeks in this fiscal year, last week was only the second week when there was a positive When stoppage of the negative flows is being seen, it has been read very very optimistically so we are at this point in time that we are discussing optimism in the market," said Sarin.
Sarin said India will be seen as separate from the emerging markets and it will attract its own share of foreign inflows, distinct from the overall inflows going towards emerging markets as a whole.
"I have been in the Indian markets for the last 20 odd years. Whenever one would talk to a foreigner, they would view us from the lens of emerging markets. Now there is increasing interest in treating India separately," Sarin said.
Sarin believes Indian corporate sector earnings will be quite robust as compared to the corporate sector earnings of its peers.
"It is a combination of domestic Indian corporates, poised for strong earnings growth to the one part and the second is the rest of the emerging markets for one reason or the other becoming less and less attractive. It is a combination which is leading to India being perceived as increasingly distinct from emerging markets," said Sarin.
Disclaimer: This article is based on an ET Now interview. The views are of the analyst and not of MintGenie.
