Market sentiment to be negative until China announces stimulus package: Avendus Capital’s Andrew Holland

China is back on the global radar, with markets waiting to see if the authorities announce a significant recovery package. But pending that, the global market sentiment will remain negative, Avendus Capital Public Markets Alternate Strategies CEO Andrew Holland said in an interaction with Moneycontrol. Investors are watching the current economic crisis in China for its “impact on global growth” and the resultant market sentiment, he said.

Watch: Market expert Andrew Holland on which sectors to invest in now & if markets will correct further

If the Chinese government announces a significant package, the “markets would rejoice”, Holland said. So far, investors have seen only “little patches” which were not “firing up the expectations that the economy would recover quickly”, he added.

India has been an unexpected beneficiary of China’s economic crisis. Holland said that the situation has resulted in India becoming the best-loved market in Asia. “The conversation (among investors in Asia) has now changed from ‘how China is cheap because the valuations are low’, to ‘what one can buy in India, even though the valuations are higher’. So, this is good news for India, till the Chinese introduce a stimulus package,” he added.