The MSCI Emerging-Market Index has risen nearly 3% in March, on track for the largest monthly advance since September, driven mainly by advances in Chinese equities.
"Following the Yuan devaluation, EM bond fund redemptions are building. This puts further pressure on currencies and can constrain monetary policy. These conditions drive an overshoot," Mowat said.
On the reforms package for PSU banks anounced on Friday, Bhatia says it is just one of the steps for revamping state-owned banks and that a lot more needs to be done.
"Reform continues in India & Indonesia. “Our bull case for EM from last month's report may be playing out. We see the asset class as a buy," Adrian Mowat, JP Morgan said.
Laurence Balanco of CLSA says after underperforming the MSCI World since early September, the MSCI emerging market is attempting to form a double bottom pattern in relative terms. He also says MSCI India on an average has delivered 8 percent returns in December to February period historically.
MSCI Index gives high weightage to investible surplus and float, says Deborah Yang, Head of Index Business, EMEA & India Region, MSCI.
In an interview CNBC-TV18, Mark Matthews, Bank Julius Baer & Co spoke about the selloff in emerging markets and the road ahead.
After months of speculation, markets were unfazed by the event, with major indices actually rallying in response, in stark contrast to the 16 percent sell-off seen on the MSCI Emerging Market index seen from late May to June.