Employees walk past electronic boards displaying stock figures in the atrium of the National Stock Exchange of India Ltd. (NSE) building in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Indian Equity Returns Likely To Lag Asian Peers, Says UBS Global

Valuations of Indian stocks are likely to come down of the general elections next year, according to Maximilian Kunkel of UBS Global.

“We are neutral on Indian equities at the moment due to high valuations,” Kunkel, who is investment strategist at UBS Global Wealth Management's Chief Investment Office told BloombergQuint in an interview. He expects returns from stocks to be positive lag Asian peers.

Maximilian Kunkel to BloombergQuint

  • U.S. inflationary pressure not high enough for Federal Reserve to be restrictive
  • Global growth and benign liquidity to fuel emerging market growth; China key market
  • Attach 20-30 percent probability to an outright trade war in the next 12 months
  • Trade war will lead to higher prices; preparing portfolios for that probability

Watch the full interview here.