“India is in very good shape at the moment,” said Gary Schlossberg, Global Strategist at Wells Fargo Investment Institute, in an interview with CNBC-TV18.

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“By all accounts, I would expect that to continue. Rates may move up, that could create a headwind in the market but for now at least, the fundamentals which are focused more than the technical, seem to be in favour of India. Earnings growth is strong, the economy is doing well, capital spending, productivity is holding up quite well. The economy is less trade-sensitive than others, so to that extent there isn’t any uncertainty about the global environment, India is relatively well isolated there,” he said.

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In terms of the US equity markets, he noted that for now the trend is clearly higher given the earnings picture. When the Q3FY22 earnings are out of the way, perhaps the market will focus on other things like higher inflation, higher interest rates and rising commodity prices.

“However, we do expect to see earnings growth in the US continue to hold up well right into early next year. Now at least, earnings will continue to provide a good underpinning to the equity market,” he said.

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According to him, the bond market is following the Fed’s lead.

“The 10-year bond yield began its ride pretty much in line with the Fed’s September 22 FOMC announcement, which upped the chances of some tapering. Between that and the elevated inflation rates that we are seeing now, is what is behind the sustained move in the 10-year yield,” he explained.

For the full interview, watch the accompanying video.

Catch all market updates here.

(Edited by : Dipikka Ghosh)

First Published:Oct 20, 2021 9:26 AM IST