Markets will rally if Romney surprises with win: JPMorgan

Mowat says the weak earnings are a reflection of the China slowdown. He remains cautions on Chinese equity market even though the Asian bigwig's worst slump since the global financial crisis levelled out in the latest quarter and retail sales picked up in a sign an economic rebound is taking shape, adding to hopes for a global recovery. The world's second-largest economy grew 7.4 percent from the year before in the three months ending in September. 

"We see commodity prices falling on economic concerns," he told CNBC-TV18 in an interview.

As far as India is concerned, Mowat says, the Indian market is discounting recovery in growth in the last six-months. "I think investors are waiting for evidence that India GDP is bottoming out," he explained.

Along with India, he likes Mexico and Turkey from the emerging market basket.

Below is the edited transcipt of Mowat's interview with CNBC-TV18

Q: US markets have had a bumpy ride offlate because earning season has not been great this time around. Do you see the stretch of profit taking continuing?

A: I think it is possible. We have the Presidential elections early next month. I think there is a degree of a wait-and-see by investors after what has been some very good months in terms of equity market performance. So, it seems reasonable that markets correct.