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Credit Suisse: India offers great long-term opportunity despite short term risk; credit cycle favourable

Updated : May 06, 2021 09:48:22 IST

India’s credit cycle is at a more favourable point than other countries, said Dan Fineman, co-head of equity strategy-Asia Pacific at Credit Suisse on Thursday. Fineman also added that India is better than other emerging markets (EMs) struggling with the pandemic.

“India’s credit cycle is at a more favourable point than rest of the planet and not just emerging markets (EMs). So, India has a lot of strength that should rank it above most other emerging markets that are now suffering from severe outbreaks,” Fineman told CNBC-TV18.

India looks relatively good compared to Asian peers on a 6-12 months basis, he added.

“On the short-term view India is a bit risky in the sense that the market is going to follow the infection numbers and the trend of the pandemic within India closely and it’s hard to forecast where that is going to go, but on 6-12 month or even longer, India looks relatively good compared with the Asian peers.”

On global markets, Fineman said, “We still are optimistic about global equities although they look expensive on PE basis. We think that’s not the matrix to be examining. We look at the equity risk premium and on that basis, equities look cheap. They especially look attractive relative to bonds."

For the entire interview, watch the video
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