A stockbroker watches share prices on a computer monitor during a trading session. (Photographer: Asim Hafeez)

What India’s Largest Hedge Fund Is Eyeing In 2019 

Andrew Holland, the chief executive officer of Avendus Capital Alternate Strategies, is positive on India’s equity market despite multiple stock routs in the U.S.

Developed markets will have a sentimental impact on emerging markets, but India’s fundamentals, in the very short-term, are extremely positive for the markets, he told BloombergQuint.

India’s benchmark equity index S&P BSE Sensex has risen 5.92 percent in 2018 so far with multiple bouts of volatility owing to global trade developments, a domestic liquidity crisis and assembly elections in five states. The country is now heading into general elections in mid-2019.

“It's not like we're rushing to the market, there are a lot of moving parts. It’s going to be a volatile six months and it’s best to tread carefully,” he said, adding that there are pockets of opportunity—fast moving consumer goods and information technology stocks—where India’s largest hedge fund is looking to deploy cash.

“Beaten down stocks in the banking and auto sector are also starting to gain as sense prevails,” Holland said. “That's where you're going to make the money in the very short term.”

Here are the other key highlights from the conversation:

  • Low oil prices are good for deficit and inflation.
  • Expect U.S. Fed Chairman to be a lot more dovish
  • There are good opportunities to enter stocks in India
  • Continue to deploy cash carefully
  • More liquidity driven market in the next 1-2 months
  • Expect government to take some kind of measure In coming elections

Watch the interview here