The Indian equity market will perform better in the second half on the back of ongoing monetary easing and receding US-China trade tensions, said James Glassman, senior economist at JPMorgan.
Glassman said, “I am much more constructive on India because the monetary turnaround going on and its helping. We are going to have a better second half of the year and as long as the trade tensions move to the background and the Chinese currency is dragging down the emerging market complex. If that stabilizes we are probably in better shape.”
Glassman said the outcome of a meeting between US President Donald Trump and his Chinese counterpart Xi Jinping showed flexibility from both sides. "We do not see a resolution to trade tension soon, but commentary from leaders positive," he added.
“The market is reacting correctly and the fear that we have had in the last couple of months that it is getting worse and worse for the global economy, I think that is receding to the background a bit for now,” he added.
Glassman said as long as oil prices stay in the range of $60-65 a barrel, he does not think it is a big problem for India. He said, “Oil prices moving back to $60 per bbl for WTI. The Russians and Saudis are agreeing to extent production cuts because they are trying to stabilize oil prices.”