Structural reforms undertaken by India bode well for the current rally, said Gary Schlossberg of Wells Fargo Investment on Tuesday.

Speaking to CNBC-TV18, he said, “Emerging markets generally benefited from risk-on trade and reflation trade. So growth will be picking up speed during the balance of the year. Therefore, emerging markets tend to do well in that environment and on top of that several of the key emerging markets including India have taken on some structural changes which bode well for their growth outlook even as the pandemic begins to wind down as a threat.”

On the US markets front, Schlossberg said, “A rising tide does seem to be lifting all ships and some of the other developed economies Europe, Japan are following us well and the US fiscal stimulus still seems to be on track. So we still have those twin tailwinds that continue to support the rally and we do not see those changing or altering anytime soon.”

For more details, watch the video

(Edited by : Anshul Majumdar)