India is showing some solid fundamentals and recovery from the COVID-19 variant, said Kohei Matsui, portfolio manager -Asia (Ex-Japan) Long-Only Equity, Sparx Asset Management, in an interview with CNBC-TV18.
Matsui said, “We can expect positive fundamentals from Indian corporates. We are also seeing some merger and acquisition (M&A) activities in the market where large companies are buying smaller companies. So, I believe the Indian market will still show some resilience, going forward.”
According to him, the financial industry is still showing positive earnings growth after recovering from COVID-19. He is bullish on financial institutions.
“Sentiment and the direction of the recovery is very important. In India, we see strength in the economic activities. So, there is ample liquidity and capital reserves with the leading financial institutions, they are well positioned in a difficult market. So, we are bullish on the financial institutions,” he explained.
He believes investors have low expectations as far as growth of internet companies is concerned, while India and the rest of Asia are still showing some resilience in terms of the outlook of technology companies. “This trend may continue, going forward,” he noted.
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He believes global equities will remain resilient. “There is ample liquidity in global markets and a robust economy outlook,” he said.
He also expects uptick in IT demand to continue.
Matsui further mentioned that higher metal, commodity pricing is a risk and it’s pushing inflation higher. He said, “If there is a run on the pricing of metals, that could be a risk to the corporate earnings too.”
For the full interview, watch the accompanying video.