In an interview with CNBC-TV18, Jonathan Garner, Chief Asia & EM Equity Strategist at Morgan Stanley and Rana B Gupta, MD-India Equities at Manulife AMC shared their readings and outlook on global equities as well as on emerging markets (EMs).
We have Central Banks tightening monetary policy in US and in China and in the course of next year Bank of Japan (BoJ) and European Central Bank (ECB) will begin to tighten, said Garner.
Sensex target is 35,700 in 2018. We do see a reasonable market in terms of earnings growth, he added.
Central bank tightening and high oil prices would be the key risks, he said.
Earnings growth in India has been very choppy in last one year, he further mentioned.
Speaking about India, Rana Gupta said, we are overweight India. Global situation remains quite good, global growth is more than 3 percent, inflation is benign for now, below 2 percent, and central bankers are tightening cautiously, so liquidity situation remains good.
India looks quite attractive among other EMs, he added.
Outlook on public sector undertaking (PSU) banks is turning around with non-performing assets (NPA) resolution and recapitalisation, said Gupta.
According to him, real estate looks very attractive.
For entire discussion, watch accompanying video...
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