HSBC’s outlook is positive on India, said Herald Van Der Linde, head-Asia equity strategy, on Tuesday, adding that the correction in the Indian equity market is driven by global factors.

In an interview to CNBC-TV18, he said, “Why is India always performing so well? I think a lot of that has to do with growth potential in the place and the nature of the economy and companies. So the outlook should be positive.”

“At the moment, what we see in India is that correction is driven by global factors. So, is this a dip and should you be buying for the long run? Maybe not completely yet, but if you are an Indian investor, at some point in time that should absolutely be the case,” he said.

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However, he said, foreign investors are taking money out of India and putting it in China and Indonesia. “My gut feeling is that they are inching to buy a bit more in China given that there is some stimulus taking place and growth is going to normalize or stabilise this year in China,” he said.

According to him, markets are pricing in 5-6 rate hikes from the US Federal Reserve. “The issue is that we are probably close to the peak than a bottom in terms of rate expectations,” he said.

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First Published:Feb 15, 2022 11:01 AM IST