FII View: India looks good on relative basis; reforms process need to pick up

“The emerging markets are at the stage where they are looking more interesting especially at a time when western markets are looking slight expensive, this often leads to rotational trade,” said Harris.

China is lagging because they have a number of issues largely on account of an election year. The oil price is languishing a bit, so the oil based emerging markets are going to do the same. And, I think India relative to that looks relatively good, explains Harris.

Commenting on the US markets, he said that the pullback in US markets was largely on cards after a strong run-up seen after US presidential election but it is not in a bubble territory yet.

Although he does not see a deep correction, but in case the US markets come back 5-7 percent, we would still be scratching the surface, added Harris. “We are still in the bull -run and the bias is on the upside. Buy on dips should be your approach,” he said.

However, on a long-term basis, Harris is bearish on US markets because it has a lot of issues to deal with. “But, we are not in the bubble territory where we would see sharp bear markets.