Mowat also mentioned that the US Federal Reserve has been extremely aggressive in tightening its monetary policy.
Emerging equity market strategist Adrian Mowat.
Market strategist Adrian Mowat said that India’s fundamentals are better than most major economies and it will continue to have very high economic growth.
He also believes that Indian market can continue to outperform its global peers, thanks to its slower rate of decline compared to others.
“But it’s likely to be an outperformance in whatever direction that global markets are going at the moment; it’s falling less than other markets,” he said in an interview with CNBC TV18.
Indian markets have outperformed most of its major global peers since mid-August due to an improving macroeconomic outlook, sustained buying by foreign portfolio investors, and easing commodity prices.
Mowat also mentioned that the US Federal Reserve has been extremely aggressive in tightening its monetary policy and the central bank’s hawkish commentary has led to nervousness among investors.
“We’ve had a period of extremely hawkish statements from the Federal Reserve and some other central banks as well. And I think the markets are quite unnerved by the Fed,” he said.
Last week, the Fed hiked interest rates by 75 basis points and hinted at more rate hikes in its war on inflation. “We have increased the policy rate substantially this year and more increases are indicated,” St Louis Fed chief James Bullard said in a statement.
Also read: RBI hikes repo rate by 50 bps as battle on inflation continues in full swing
Talking about the Bank of England, Mowat commended the central bank’s step to buy as many long-dated government bonds as needed to stabilise financial markets, after a slump in British gilt prices.
The Bank of England (BoE) on Wednesday announced to buy up to £5 billion ($ 5.31 billion) of British government bonds of at least 20 years’ maturity every day until October 14.
“And, so the next stage, I think is (other) central banks being as sensible as the BoE, and starting to look a little bit more at financial markets and financial stresses, and do their job,” Mowat said.
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