The first budget after a general election should see the most fiscal discipline because the political cost is the lowest, he said in an interview with CNBC-TV18.
According to Mowat, there has been a profound change in central bank policies around the world.
Adrian Mowat, JPMorgan is underweight on IT, pharma and consumer staples due to expensive valuations. He likes private players in the financial space
The June quarter earnings story does not offer confidence and the whole bull market scenario looks a bit shaky at current levels, given the fact that benchmark indices are already trading above their long-term averages.
The valuation of the Indian market is at the top band as there is a lot of optimism which is priced in the Indian market.
Adrian Mowat of JPMorgan believes that the market could go up if the earnings growth catches up. He sees the Nifty’s target of 10,500 in a bull case scenario, but also highlights the inconsistency on macroeconomic data front.
India remains the highest net overweight market in emerging markets.
Speaking to CNBC-TV18, Mowat said that the last two quarters were tough for India due to demonetisation and the US election outcome but a pro-business and pro-reform government will keep confidence high in marke
Deepak Parekh, Chairman, HDFC is disappointed that there was nothing on corporate tax, except a proposal to cut corporate tax rate for MSMEs (Micro Small and Medium Enterprises) having revenues less than Rs 50 crore to 25 percent.
There is going to be a lot of volitility in the global markets if Hillary Clinton loses the elections, he says. This is due to the vacuum of information until more clarity on the policies he employs in US emerges.
Strengthening dollar and rising oil prices are the global headwinds for EMs, says Adrian Mowat, Chief EM & Asian Equity Strategist at JP Morgan.
Mixo Das of Nomura says all eyes are on the September 21 Federal Reserve/Bank of Japan meetings.
Adrian Mowat OF JP Morgan said that China, which has been a laggard, is beginning to outperform. He believes that there will be inflows into emerging markets in general.
In case of India, earnings per share revisions have turned from negative to flat, Mowat says, adding earnings surprises continue to be driven by margin dynamics.
JP Morgan has an overweight stance on India with expectations of double digit returns as the index moves towards 9,000 level. Strong earnings are expected in 2017, Adrian Mowat of JP Morgan says.
CLSA‘s Chris Woods sees emerging markets gaining from more monetary easing by central banks in a bid to counter possible volatility arising from the Brexit.
Adrian Mowat, Chief EM & Asian Equity Strategist, JPMorgan Chase, says if you look at some of the early indicators for corporate capex, such as truck sales, they are now turning around and looking very encouraging. However, data aggregator CMIE cautions that all is not well with the Indian business environment.
The infrastructure and cement industry is finally seeing promises made by the Narendra Modi fulfilled as executives say demand has increased on back of government initiatives.
As far as China is concerned, Adrian Mowat of JPMorgan feels the situation is becoming less precarious and the pressure on the Chinese currency (yuan) is easing now. He does not see China dragging India lower, instead feels it is the repositioning of portfolios that has dragged the country lower
The one big event that could cause significant outperformance for India would be the RBI moving into a easing cycle but that is still a bit away, says Adrian Mowat of JP Morgan.
In an interview to CNBC-TV18, Adrian Mowat of JP Morgan, says the US Fed's hike is in-line with the financial services firm that expected a 25 basis points (bps) hike in each quarter in 2016.
According to him, 2016 median EPS growth is optimistic at 22 percent but even with downgrades growth will be high relative to the region.
Former Reserve Bank Governor C Rangarajan says prices of pulses and vegetables are likely to rise even now.
Adrian Mowat, JPMorgan's chief Asian and emerging market equity strategist, says in the near-term, China, Taiwan and Korea are likely to perform better than India
In a survey at brokerage's Emerging Markets Credit and Equity conference, EM equities received most votes for best performing asset class in 2016, says Mowat, adding India remains the preferred market.