Indian equities continue to remain quite resilient, says Adrian Mowat

Emerging equity market strategist Adrian Mowat (Image: CNBC TV18)

Despite the turbulent geopolitical situation that has sent jitters to markets around the world, the Indian equities continue to remain "resilient", said Adrian Mowat, a leading emerging equity market strategist, while speaking to CNBC TV18 on March 10.

Markets globally are experiencing a tough period, Mowat noted, as he pointed towards the "weak performance" of the expensive tech stocks in the US, and the "Chinese equities doing poorly at the moment".

In addition to this, the Russia-Ukraine conflict and the resulting sanctions have further dipped the investors' confidence, he said. "So you see broad redemption in equity funds, including emerging market equities. And I think India is simply suffering from that," the expert added.

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In spite of this, the Indian equities have shown resilience, he said. "When I look at Indian equities, they have proved to be quite resilient. Typically, one would expect Indian equities to underperform with the oil prices where they are today."

"Indian equities are down about four percent, but they are quite significant outperformers in the global market. So I think on a relative basis, you should be comfortable with the performance of Indian equities. Let's not focus just on what the lifetime highs were and how much we're down from that point," Mowat added.

Notably, the global markets were severely hit on February 24 when Russia launched a military offensive against Ukraine. Following the sanctions imposed on Moscow, the commodities market faced a supply shock.

The energy crisis, in particular, intensified after the US announced a ban on Russian oil imports earlier this week. The UK and European Union also decided to eliminate oil sourced from Moscow in phases.

“I believe crude prices have peaked at around $130 a barrel. The Russia-Ukraine crisis is becoming less dominant now, and focus will move to the Federal Reserve," Mowat noted.

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