Easing in India

The RBI came out yesterday with its second consecutive rate cut as economic growth starts to cool amid the ongoing general elections. The political desire for stimulus is understandable in the investor community, especially at a time when the rupee has stabilized and inflation is low. While we expect some rupee weakness to return, the growth picture is relatively attractive versus Emerging Asia. The narrative of China’s growth stabilization appears less than solid (see: “China’s glimmer of growth”, April 4th), leading us to prefer the resilience and homegrown nature of the Indian economy and its equity market. Lower UST yields should continue to support an outperformance of Indian equities.

 

 

 

DISCLAIMER: This report was prepared for circulation to institutional and sophisticated investors only and without regard to any individual’s circumstances. This report is not to be construed as a solicitation, an offer, or an investment recommendation to buy, sell or hold any securities. Any returns discussed represent past performance and are not necessarily representative of future returns, which will vary. The opinions, information, estimates and projections, and any other material presented in this report are provided as of this date and are subject to change without notice. Some of the opinions, information, estimates and projections, and other material presented in this report may have been obtained from numerous sources and while we have made reasonable efforts to ensure that the content is reliable, accurate and complete, we have not independently verified the content nor do we make any representation or warranty, express or implied, in respect thereof. We accept no liability for any errors or omissions which may be contained herein and accept no liability whatsoever for any loss arising from any use of or reliance on this report or its contents.

© 2019 PGM Global Inc. All rights reserved. This report may not be reproduced, distributed or copied, in whole or in part, in any form, without the written consent of PGM Global. PGM Global Inc. is a CIPF member.