It’s important to look at the macro factors in India, said Richard Harris, chief executive at Port Shelter Investment Management, on Friday, adding that most of the emerging markets (EMs) should do well.
He said, “Many of the emerging markets, China and India, will continue to see some reasonable strength out of Western markets which is what they need for their export business.”
On inflation, Harris said that it’s going to go up more than people think. “High inflation is here and it’s here to stay. So, inflation is impacting the markets. It will impact the markets in terms of real interest rates, which will give an artificial encouragement to equities to keep them going.”
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“So, inflation isn’t overwhelmingly bad for the equity market. It is bad for some equities and good for some equities. Inflation, per se, is not bad news for equities,” said Harris.
For the entire interview, watch the accompanying video