Dalal Street ended Friday's trading session and the week with losses. Sensex and Nifty lost a percent each for the week with IT stocks falling the most. But how are equities poised for 2023? Will China become the tactical play for 2023 and what are the implications of falling crude oil prices? CNBC-TV18 discusses that and more on this week's edition of the 'Editors' Roundtable' with Amish Shah, India Equity Strategist at BofA Securities.
BofA Securities are confident that for next year China will do well. Shah said, “Surely, for next year, we think China will do well, even if it is tactically, the market you as you rightly pointed out, is really cheap. Economies opening up after a long time people would want to travel, discretionary spends will pick up, China will do well.”
However, he added that China's recovery won't be at the cost of India. He said, “Historically if you plot the data, we have seen that the direction of the flows for India and China is unidirectional. In other words, if China gets flows, India gets flows as well right? The reason for this is quite simple, over 90 percent plus of the funds that invest in India are actually known India dedicated funds. So this is the EM pool of money, if money does get allocated to the emerging markets, you can under allocate to India, but it is very unlikely that it is going to be negative flows for India. So the positive China story is actually a positive FII inflow story for India as well.”
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