JPMorgan India Investor Summit 2017 kicks off in New Delhi today. In an interview to CNBC-TV18, from the sidelines of the summit, Sunil Garg, Head of International Equity Research at JPMorgan spoke about the summit and shared his views and readings on the market.
Garg said markets are still going to be reacting to earnings growth.
Talking about emerging markets (EMs), he said EMs have been strong performers.
"EM earnings growth was lagging global earnings growth. This year it has been strong at 20 percent and our expectation is that as some of the accommodation is removed and you probably have a tactical bounce in the dollar, it does weigh on emerging markets. So it's a tactical profit taking call. I wouldn't call it a downgrade as such but yes, we have neutralised the call and we think in the short-term it is definitely worth taking profits," said Garg.
According to him, Indian markets have performed in sync with emerging markets.
Indian market sitting on valuations above historical levels, he further mentioned.Watch accompanying video for more details.