Standard Chartered Wealth Management is overweight on the Indian equity market, Steve Brice, chief information officer, told CNBC-TV18. Brice also said that the Indian market could see volatility in the short term.

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“We are overweight on India; we have seen an extremely strong performance over the course of the past few months. It’s really difficult to bet against the Indian stock market. Obviously, people can talk about valuations, challenges etc., and we are seeing oil prices being big which historically is bad for India, but overall, the market’s just struggling, they are softened and are seeing a very strong environment generally,” he said.

Brice also said, “The good news for India is that the dollar has not broken higher, despite the trend, 10-year treasury yields in the US going up, but overall, the environment suggests that the stock market could see some volatility in the short-term, but the trend seems to be the friend for now.”

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On global markets, he said, “We are not overweight on Asia ex-Japan. We prefer developed markets like Europe for the value tilt and obviously, we are still overweight on the US, which has been a long-term overweight for us.”

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“In Asia, we do think that India is well-positioned for reopening trade. Obviously, a lot of other countries are still lagging India's progress on this and India still has a long way to go, but the reopening trade is still likely to come through. So overall, we think that India will continue to outperform within Asia ex-Japan,” Brice said.

For the entire interview, watch the video

(Edited by : Dipika Ghosh)