Indian market is likely to take a breather after the election results and the country would witness FII inflow post poll verdict, Mohammed Apabhai, head of Asia Pacific Trading Strategies Group at Citi, said.
Outperformance of India among emerging markets is quite significant, he said. "Over the last 7-8 years, the outperformance has been over 125 percent. So I think a lot of money is forced into India, not necessarily because of the economic story, but purely as a result of momentum," Apabhai observed.
“There are a lot of parallels between Indian and the US equities. Both are seen as growth markets and continue to outperform the rest of the emerging markets. In the US, we do expect the markets to be pretty rangebound. Once we get through the election and the Reserve Bank of India meetings, the Indian market may take a bit of a breather and then we just wait for the next catalyst. But I think if you are investing for the next 12 months in most of these markets, it will probably be higher,” he further mentioned.
“It does appear that globally, gross domestic product is entering a bit of a soft patch. The market is a lot more concerned about this than some of the policymakers are,” he added.
First Published: IST