Cartica Management handles more than $3 billion worth of assets of which nearly a third is invested in India. Teresa Barger, Cartica's CEO and co-founder, discusses the outlook for Indian markets and her picks in the banking space.

“I think that India does have aspects of a safe haven from the trade turmoil that China is going through. I like the medium-term cyclical story in India and having a very big domestic market is very positive,” said Barger.

“In India, speaking of the banks, we have seen high quality governance banks like HDFC Bank and RBL Bank, which is in our portfolio, breakaway from ICICI Bank, Axis Bank and those that are having corporate governance problems either because there is a scandal or there is no succession planning, which is a real failure of the corporate governance. We still like that. Famously we are in very expensive company in India called Page Industries,” she added.

“Even though India has faced depreciation and nervousness about elections, it still is somewhat insulated from trade turmoil,” said Barger.

“I am looking for overall growth in productivity in India. I think building the roads, railroads, getting some of that infrastructure in place will lead to higher productivity in India. We are modestly hopeful that we are seeing signs of investments finally,” she further mentioned.