The India rally has seen stocks that have benefitted from Centre's policy initiatives, Sullivan added, such as capex, defence and infrastructure plays. Within this, some spaces are yet to see foreign investment, such as supply chain.
"The markets priced in 100 basis points of rate cuts in the first half of 2024. JP Morgan's house view is that it is much more likely to be in the second half," the analyst said
Markets are currently pricing a 70 percent chance of rate hike in June, which JP Morgan also expects, said James Sullivan.
James Sullivan of JPMorgan says the common factor among all the markets is that they dislike uncertainty. The lack of clarity on the policies he may employ will be a cause for volitility in the markets. Traders are also spooked by the fact that Trump victory may add to US's debt.
According to James Sullivan of JP Morgan, oil could be lower than forecast on the back of resurgent Nigerian supply.
Going forward, financials, consumer discretionary and cyclicals are likely to lead the market rally, aided by positive economic growth, said James Sullivan, Head of Equity Research Asia ex Japan, JPMorgan.
Global market experts believe although there are definite chances of a rate hike before 2016 ends, it would not rattle the emerging market space. However, short-term there could be some hurdle for the emerging markets (EMs).
Speaking to CNBC-TV18 James Sullivan, Managing Director-Asia Equity Research, JPMorgan, said that in the short-term the Nifty index has moved past their target of 8600.