Money will move out of India into Indonesia and China in 2022, said Herald Van Der Linde, head of Asia equity strategy at HSBC, on Wednesday, adding that valuations in India are expensive and therefore, the focus will shift to China from India.
He said, “The valuations are supported by decent growth but that is also true for other markets in Asia and that’s why valuations are lower. So valuations, on a regional basis, a little bit of a concern.”
Talking about sectors, he said that the firm is looking at auto companies with electric vehicles (EVs) in focus.
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“Autos, where supply chain issues are going to be not so much of a concern; the commodity prices, last year, were a bit of an issue but that may be a bit less. So EV adoption is rising, domestic demand is picking up. So would look at some of the auto companies and other domestic-oriented sectors like retail, FMCG companies that have not performed,” he added.
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For the entire interview, watch the accompanying video
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(Edited by : Mitali Mohite)
First Published: Jan 5, 2022 10:06 AM IST