JP Morgan sees confidence in EM rising, overweight on India

Adrian Mowat, JP Morgan said, "Our confidence in emerging markets (EM) equities is building and positioning in EM is bearish. “Many of the structural issues, particularly in EM Asia, are reflected in the market. MSCI EM is outperforming DMs & US year to date,” he adds.

The brokerage re-iterated overweight on India, he said, adding reform is progressing and it remains reasonable to forecast faster growth in H2 2015.

“We are concerned that Indian corporates and consumers prove cautious, resulting in a slower pickup in growth. The experience in developed markets is that investors are patient if policy remains supportive,” Mowat said.