India To Be Seen As Safe Haven Amid Global Economy Slowdown, Says Andrew Holland
Avendus Capital’s Andrew Holland expects a 25 bps RBI rate cut on Thursday, though he says it should be a 50 bps cut.
India will be seen as a safe haven for investors as the global economy goes through a slowdown, primarily led by geopolitical and trade issues, said Andrew Holland, chief executive officer of Avendus Capital Alternate Strategies.
“That’s probably why we’ve been one of the best performers this year,” Holland told BloombergQuint in an interview. “Foreign investors will seek India as a safe haven not only for domestic growth but also from foreign markets. That’s exactly what you saw in 2018 when India had a safe haven stature because its a domestic-driven economy and not an exporter.”
India’s benchmark Sensex has risen 11.48 percent in 2019 so far, compared with a 3.99 percent gain in the MSCI Emerging Market Index.
Here are the other highlights from the conversation with Andrew Holland:
- Expects a 25-basis-point cut in RBI’s June monetary policy, though it should be a 50-basis-point cut.
- Correct policies in the first 100 days of the new government could bring huge inflows into India.
- We deployed more money into India during exit polls.
- The U.S. is heading toward a recession, even major brokers are starting to talk about it.
- Bullish on private banks and consumption stocks.
- Auto sector will take some time before it comes back to double-digit growth. The sector hasn’t bottomed out yet.
- Believes the pricing pressure in telecom space is nearing an end.
- Expects a 100-basis-point cut in interest rates for this year.
- Need large PSU banks to drive GDP growth.
Watch the full video here: