Rob Subbaraman, head-global macro research at Nomura, on Tuesday, said that the thing that’s going to constrain the Indian equity market is inflation being sticky; and the central bank may at some point, pivot to a more hawkish view.
Speaking in an interview with CNBC-TV18, he said, “We are more optimistic. We believe that India went through the Delta (COVID-19) virus before anyone else. We think it was a wake-up call. We are optimistic and it’s critical that the vaccination rollout starts accelerating from August, as that would put India in a good spot.”
“We are also seeing a quick rebound from the lockdown. We think growth is going to come back quickly in the second half of this year; a part of pent-up demand and that’s also going to be supportive for India,” Subbaraman said.
On global markets, he said, “The market has been oscillating between the two; first, it was inflation and now, it’s a peak growth. I am more in the inflation camp and worried about inflation staying high. I am not so worried about growth coming off too sharply and ultimately the Fed will have to start normalizing and the market will start to focus back on that,” he said.
For the entire interview, watch the video.