Foreign investments will continue to increase in the Indian market, said emerging market (EM)-equity strategist Adrian Mowat, in an interview with CNBC-TV18, adding that macros were improving for the market.

“There is nothing wrong with the economic outlook in India … with inflationary pressure and the number of houses forecasting that the RBI will cut the repo rate a number of times this year, one should be sanguine about the economic outlook in India,” he said.

“Indian market was a significant outperformer in 2018. So what we saw in the first 2 months of this year was the recovery trade in other markets which have fallen sharply, particularly the Chinese market. We are now into a stage where we move beyond that recovery from the big sell-off in Q4 and it is going to be a function of the underlying fundamentals of different emerging markets. So I do expect the Chinese economic data to begin to improve and that to continue to support that market,” Mowat added.

Talking about auto stocks, he said, “I think there is an argument for buying things like 2-wheelers on a hope that you get a boost to consumption around election time but beyond that I do not see a strong argument for buying Tata Motors or Maruti at this point in time.”