India and the Association of South-East Asian Nations (ASEAN) are much superior to the rest of the region in terms of their exposure to trade war, said Paul Kitney, chief equity strategist (Asia-Pacific), Daiwa Capital Markets.

“These economies, particularly India, is driven by domestic demand, or regional demand in the case of emerging ASEAN and India, whereas China, Japan, Korea are ground zero as far as the trade war is concerned,” he said in an interview with CNBC-TV18, adding "We like Indian equities in terms of relative attractiveness."

“The reason why we switched to risk-off in July because we thought that the world will be focusing less on 2019 earnings going forward and more on 2020 and this combined with a lack of any resolution on trade with a lead to a significant slowdown in growth and both GDP and earnings from around the middle, particular of 2020,” said Kitney.

He further said that the acceleration of trade woes will give shape and magnitude to the slowdown. "We believe there will be a risk-off in global equities," added Kitney.