India is likely to outperform China for the rest of the year, is the word coming in from Richard Gibbs, The Principal, Plantagenet Investments. There are a lot of variables (China, Greece) out there, though the crisis mentality has abated, which is the wise thing to do, he says.
According to him, the Indian market is well placed considering the WTI is under the USD 52 per barrel mark and may go further down, which is good for the market.
Below is the verbatim transcript of Richard Gibbs' interview with Latha Venkatesh & Sonia Shenoy on CNBC-TV18.
Latha: Is this the right way to approach both China and Greece, not worry so much and only concentrate on domestic Asian economies?
A: We still need defensive mindset and that is most appropriate because we still have a lot of variables there but certainly the crisis mentality that was last week, seems to rebate but there is still more adjustment to go and one could say on the China side perhaps it's just a case the regulators have been successful in throwing sand in the gears at this point in time to stabilise the market.
Sonia: You have been bullish on India for long but the fact of the matter is that our market has not performed at all this year. It\\'s been absolutely flat. For the rest of the year what is your expectation?
A: The high beta market perform when you get an increase in risk aversion as we had in the last month in particular but I still think the Indian market is well placed, bear in mind of course that WTI is under USD 52 per bbl mark and it is going to go low to 50s - that\\'s positive for the Indian market.
The Indian economy drawing still the majority of its strength from its domestic side and that\\'s still well placed. We are not going to see the fallout that potentially we are going to see in China on consumers in India. So consumers are going to remain fairly upbeat relative to China. So I would suspect as we move down to the second half of this year that India will outperform Chinese market.
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