HSBC believes this is a healthy correction in global equities, said Herald Van Der Linde, Head-Asia Equity Strategy at the Investment banking company, on Friday. He further said that India is on top of the list of markets they would want to look at.

“This is a healthy correction; about a month ago we thought there would be a wobble in the markets, in the sense that bond yields at some point of time going to bite into Asian equity valuations, which were quite high and we are in this wobble now,” Linde told CNBC-TV18.

Linde also said that he would buy into the markets like India. The country is on top of the list of markets he would want to look at.

“India is not on the top of my list but it’s on the top of the list of markets where I want to look at, where a correction is something that I would buy into. We are neutral at the moment but it’s a market I would want to keep a very close eye on, we might find a good entry opportunity at some point of time.”

On stocks, Linde said, “Therefore, as market come off you want to buy into those stocks that have their long-term potentials, so think about pharma names, some of the IT names and also domestic retailers that have a phenomenal distribution network across India. So I would look at long-term structural stories because you can buy those at really good prices in the next couple of weeks.”

On global markets, he said we have downgraded China and South Korea.

“We put our money into Association of Southeast Asian Nations (ASEAN) markets, they are cheaper and they would benefit from lower bond yields. We are more cautious on markets such as Taiwan. Indonesia, Thailand beneficiaries of low bond yields. Singapore is a bit more defensive.”

Watch the video for more

(Edited by : Ajay Vaishnav)