Paul Schulte, Founder & Editor of Schulte Research, on Tuesday said that India is one of the four favourite emerging markets of the financial services company. The other three are China, Taiwan and Korea.

"India counts up there with China as well as Taiwan and Korea as my 4 favourite markets for emerging markets (EM) world," said Paul Schulte in an interview with CNBC-TV18.

"We did a lot of credit research and a lot of the industrials that are the foundation of the index in India - they are having credit problems; there are tremendous amounts of companies that are underneath the main constituents of the index that are going to do well,” he said.

According to him, the main constituents of industrial stocks in India could see a margin squeeze. “I don’t necessarily want to be there. Their inputs are going to go up and their pricing power may be restricted. I want to be in some of the new technologies, new industries; the companies that are digitising faster than anybody else are going to be given premiums,” said Schulte.

Schulte believes valuations are extreme in commodity and emerging markets. “For me, the most extreme undervaluation of asset class in the world right now is agricultural commodities. There is no more extreme undervaluation of a group relative to the S&P 500 than super cheap agricultural commodities,” he said.

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(Edited by : Niral Sharma)

First Published:Jan 19, 2021 10:53 AM IST