Bank Julius Baer & Co remains overweight on India and that's unchanged, Mark Matthews told CNBC-TV18. According to him, there is a tectonic shift going on in China in terms of social imbalances and India could benefit from these changes.

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Matthews said, “Because China was a wake-up moment for many people, I included. The idea that you could basically shut down sectors that had a market capitalisation of over a hundred billion dollars overnight was alarming, so there is a tectonic shift going on in China and not without reason, social imbalances need to be rectified, most of the things they have done, on a personal level, I kind of agree with that.”

He further said, “The consumer technology stocks were so big in the offshore Chinese market, it has caused a big departure from China. So, some people will choose a safe port like the US, Sweden but then there are other people who will want to have something in Asia because Asia is a very vibrant and growing region, then those people would be interested in places like India. I don't think it's a coincidence that the Indian market broke out, precisely the same time all these things were going down in China.”

On Indian IPOs, he said, “Combined with the fact that there's a very healthy new economy initial public offering (IPO) pipeline, I am not saying all of them are good. In fact, I was not very happy to see Zomato’s loss widening two days ago on the back of increased employee stock options, but generally, people will be looking for alternatives particularly in the new economy space and India does have a big offering of those coming up.”

For the entire interview, watch the video

(Edited by : Dipika Ghosh)

First Published:Aug 13, 2021 10:18 AM IST