Nomura continues to see risk-reward unfavourable on balance, and maintain cautious view on Asian equities.
With developed market yields starting to move towards normal levels on the back of anticipated economic recovery, attention will shift to fundamentals once again unless developed market economic growth were to falter in CY17, Sanjeev Prasad says.
US economy strengthening in 2017 will have a negative impact on emerging markets (EMs), said Mixo Das of Nomura. However, in the near-term, EMs are likely to underperform the developed markets.
Speaking to CNBC-TV18 Mixo Das of Nomura said that he was less excited about the Bank of Japan and US Fed meetings that happened over this week. The US Fed was expected to stay pat and that is what it did, he said.
Mixo Das of Nomura says all eyes are on the September 21 Federal Reserve/Bank of Japan meetings.
Our India strategists believe that FY16 may have been the last year of capex declines. Potentially favourable monsoons this year and additional spend in the economy by way of pay commission awards may add to the recovery later this year, says Mixo Das of Nomura.
While we see an upside to all major indices over the course of the rest of the year, we are cautious in the near term and anticipate further market weakness ahead\, says Mixo Das of Nomura.