Jonathan Garner, Chief Asia and EM Equity Strategist at Morgan Stanley discussed how one should approach global markets and what to expect from them.

Share Market Live

NSE

On expectations from FOMC, Garner said, “We don’t expect any significant change. They have been very clear about the shift to average inflation targeting and taking risks from the upside with inflation and so it will be 2023 at the earliest before one should be talking about any kind of adjustment on interest rates. I do think the movement upwards in long-dated bond yields is likely to continue.”

Morgan Stanley has been quite cautious on emerging markets (EMs), he said.

“Year-to-date (YTD) EMs are significantly underperforming globally.”

On the Indian market, Garner said, “We are more bullish on Indian than we are on EMs overall. It is overweight for us. It has outperformed EMs by about 300 basis points (bps) YTD. Earnings growth should be well over 30 percent according to Ridham Desai and the team. So our Sensex target 55,000 does imply upside from current levels whereas for EMs overall we don’t have any upside target price.”

Morgan Stanley is overweight on financials and energy, he added.

“Our overweight sectors across the markets are mainly in financials and energy. In some parts of our coverage in India, we like industrial cyclicals but where we are most cautious is on the most expensive parts of the market in internet and healthcare in particular,” he stated.

Watch the video for more

(Edited by : Ajay Vaishnav)

First Published:Mar 16, 2021 10:21 AM IST